The federal government is defending plans to refocus Australia’s leading science agency’s priorities due to financial strain, leading to the loss of hundreds of jobs – amid warnings from scientist groups that a lack of investment will stifle innovation.

The CSIRO said on Tuesday that up to 350 full-time staff roles will be abolished as it embarks on a new research direction due to long-term financial sustainability challenges caused by its funding failing to meet the rising costs of running a modern science agency.

The union representing the agency’s workers and the peak body for scientists slammed the Albanese government for “devastating” cuts, which they said would hurt Australians and their futures.

The agency says it cannot remain financially sustainable under current funding, without job losses. Photo: AAP

CSIRO chief executive Doug Hilton said the organisation had to adapt to achieve the right balance after decades of stretching resources to maintain its programs and workforce.

“As today’s stewards of CSIRO, we have a responsibility to make decisions that ensure we can continue to deliver science that improves the lives of all Australians for generations to come,” he said.

Industry and Innovation Minister Tim Ayres said it was important for the CSIRO to ensure it was fit for purpose with a modern, forward-looking science agenda.

“It is obviously a difficult time for the organisation, but with prioritisation, from a government that believes in our national science institution and its capacity to serve the national interest, that is a necessary process, and I support them working their way through those questions,” he said in Western Australia on Tuesday.

In a proposed overhaul announced on Tuesday after an 18-month review, the CSIRO said its key focus areas would include supporting a clean, affordable energy transition, addressing climate change, applying advanced technologies such as AI and quantum, mitigating and eradicating biosecurity threats and applying disruptive science and engineering to solve unanswered questions.

The CSIRO is prioritising key research areas, as it deals with ‘devastating’ funding cuts. Photo: AAP

It said the sharpened focus meant other research activities would have to be de-prioritised, leading to the job cuts.

The includes nutrition, an area in which Ayres said the CSIRO’s work had matured or was being done by other scientific and research organisations.

In the past 18 months, the agency has cut 818 jobs. CSIRO Staff Association secretary Susan Tonks said that represented deeper cuts that during the era of the Abbott government.

“These are some the worst cuts the CSIRO has ever seen,” she said.

“We don’t need a crystal ball to know these cuts will hurt – they’ll hurt families, farmers and our future.”

The peak body for scientists and technologists supports the CSIRO’s ambition to sustainably deliver science, but said it required more investment, not less.

“Without a continued investment in fundamental research and discovery, there will be no future innovations to deploy,” Science and Technology Australia chief executive Ryan Winn said.

Consultation with staff, the union and others will begin this week.

—AAP