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More than 60 jobs are to be axed from Callaghan Innovation as the government's science sector overhaul takes hold.
Under a proposal outlined last month, the Crown Research Institute will be dissolved while others are to be merged into new Public Research Organisations - due to be established over the next 12-18 months.
The changes, which come off the back of Sir Peter Gluckman's review of the science system, have received broad approval.
However, the Public Service Association has accused the government of dismissing the very workers it said it valued, claiming the rapidity of the changes will force researchers overseas.
In a letter of expectation to Callaghan's board, seen by RNZ, Science Minister Shane Reti confirmed funding would cease on 30 June for parts of the organisation that would not be subsumed by the PROs.
PSA acting national secretary Fleur Fitzsimons said the round of redundancies was contrary to the government's stated focus on economic growth, with 14 of the 63 staff losing their jobs at Callaghan Innovation scientists and engineers, while others held roles in commercialisation, Māori innovation, and data and digital.
"People working in those commercialisation roles have the skills to turn ideas into internationally marketable products and services quickly and successfully.
"The Minister is driving workers with essential knowledge out of the country. By defunding Callaghan Innovation before it's disestablished, the Minister is forcing staff into redundancy with nowhere in New Zealand for them to go to."
She said a review of Callaghan Innovation's functions - to determine which would be retained and transferred elsewhere - had resulted in minimal change and did not allow for the institution's input.
Minister Reti did not respond to questions about the capability review, but in a statement to RNZ reiterated the reasons for Callaghan Innovation's disestablishment - that it was spread too thinly across many conflicting functions.
He said the science sector reforms were aimed at getting the "greatest value for our economy and our people" and were focused on strengthening the science system, not on job cuts.
It was too early to say how many staff would be transferred to other organisations or made redundant - and those decisions would be managed at "an operational level", Reti said.
A spokesperson for Callaghan Innovation said the disestablishment programme had begun affecting 63 roles.
"The roles affected are those related to activities that can either cease immediately or where the level of work will significantly decrease."
Work to transfer and disestablish the organisation was ongoing.
Parts of the organisation that would be transferred to MBIE included the R&D tax scheme and other start-up and incubator programmes. The Food Innovation Network, Bioresource Processing Alliance and Measurement Standards Laboratory will be brought into the most relevant PRO.
