A Former New Zealand Chief Science Advisor says the science sector was overdue for a major rework

The seven research crown institutes will now merge into three public research organisations and another public research group is also being created - to focus on AI and advanced technology.

Callaghan Innovation's set to close, with 355 jobs impacted.

The moves follow a months-long review of the sector, by a panel led by Sir Peter Gluckman.

He says the current system was not efficient or fit for the future.

Gluckman says there's duplications, gaps and not much oversight over the whole system.