Forestry Corporation of NSW (FCNSW) has announced it will cut more than 50 jobs across the state, with the largest impact falling on Coffs Harbour, where 32 positions are set to be abolished.

The state-owned forestry agency said the reductions are being driven by the proposed Great Koala National Park (GKNP), which would transfer approximately 176,000 hectares of state forest into the national park system. Forestry Corporation said the change would significantly reduce timber harvesting volumes and forestry operations along the NSW North Coast, making the workforce reduction necessary.

In addition to the 32 positions in Coffs Harbour, another 19 jobs will be cut elsewhere across New South Wales. Forestry Corporation said those additional reductions are linked to broader financial challenges, including a prolonged downturn in the softwood timber market, rather than the proposed national park.

The announcement has sparked concern among local communities and industry representatives. NSW Nationals leader and Coffs Harbour MP Gurmesh Singh warned the job losses would have wider economic consequences, arguing fewer workers in the city would affect cafés, retailers and other local businesses that rely on daily trade from Forestry Corporation employees. He also claimed uncertainty surrounding the proposed Great Koala National Park had placed significant pressure on the region's native timber industry.

The proposed Great Koala National Park is one of the NSW Government's flagship environmental commitments. Once established, it is expected to cover 476,000 hectares of protected land extending from areas near Grafton through Coffs Harbour and south towards Kempsey. Logging has already been suspended in sections of the proposed park while legislation is being prepared.

The workforce reductions come amid broader difficulties for the region's timber industry. Timber company Pentarch Forestry has also announced plans to cut jobs and close one of its mills at Herons Creek, citing ongoing shortages of timber supply following the logging suspension associated with the proposed park.

The NSW Government says it is working to minimise the impact on affected employees. A government spokesperson said workers whose positions are abolished will be offered opportunities to transfer into the National Parks and Wildlife Service (NPWS), with around 100 new NPWS roles expected to be created as part of the establishment of the Great Koala National Park. Support packages are also being prepared for employees who do not transition into alternative government positions.

Industry representatives have expressed concern about the long-term future of native timber production on the Mid North Coast, while environmental groups continue to support the creation of the park as an important conservation initiative for koala habitat and native forests.

Legislation formally establishing the Great Koala National Park is expected to be introduced before the park's planned completion by 2028, with debate likely to continue over balancing environmental protection and regional employment.