About 10 jobs will go at Hunter Medical Research Institute [HMRI] due to funding cuts from a NSW government program.
HMRI confirmed it had to reduce staff numbers to "ensure its ongoing financial sustainability".
This was due to "forecast reductions in funding from the Medical Research Support Program (MRSP) and a projected budget shortfall in 2025".
The government promotes the MRSP as its "flagship infrastructure funding program for eligible independent medical research institutes across NSW".
Research institutes have been told to prepare for funding cuts of 25 per cent.
HMRI had about 112 staff. Cuts could be made across the business, but that had not been decided.
Its decision to cut jobs was "part of a broader strategy to reduce reliance on external funding and strengthen our core operations".
"Sadly approximately 10 positions will be affected," an HMRI statement said.
HMRI CEO, Professor Frances Kay-Lambkin, said the institute was "committed to supporting all staff during this difficult time".
Professor Kay-Lambkin was aiming for "a smooth, transparent and equitable process".
"HMRI is making strategic, considered and necessary decisions to protect long-term sustainability," she said.
This was like "any organisation facing challenges and changes to external funding".
HMRI's chief operating officer Brian Jones said "these adjustments are part of our long-term strategic plan, as well as being driven by the need to develop a sustainable 2025 budget".
"Acting now allows us to secure a sustainable future and continue delivering on our mission," Mr Jones said.
He said HMRI was working to "make these tough decisions with as much care and support as possible".
HMRI said it was "committed to open, transparent and honest communication throughout this process to avoid surprises and misunderstandings".
"Regular updates are being provided to staff to ensure everyone is informed and prepared for any changes."
HMRI marked its 25th anniversary last year.
It was dedicated to the "pursuit of groundbreaking medical discoveries that aim to help people live better, healthier lives".
It said at the time it was a 1700-strong organisation when medical researchers and students were included.
