Dozens of small research projects deemed to be unable to make a real difference to woolgrowers may end, while the big on-farm issues of lice, wild dogs, mulesing alternatives and shearer training are to remain as the focus of research.

• Major AWI review to deliver more redundancies
• Mulesing, lice, wild dogs, shearer and shed training core research and development areas
• $120 million revamp of Australian Merino under question
• Sheep Genetics Australia and Sheep CRC funding questioned

The massive restructure is now taking place after it was revealed last month by new AWI chairman Wal Merriman that a funding shortfall of up to $10 million threatened the company, with woolgrower levy payments and Woolmark license revenues falling sharply in the last 12 months.

"I can't say what will go because the board has not met yet; we meet next week," Mr Merriman said.

This week AWI announced the redundancies of several senior staff including corporate affairs manager Matthew Flugge, manager for ethical production and trade, Norm Blackman and manager of industry relations, Danny Pagoda.

All played key roles in dealing with the media, industry and government through the controversial issue of mulesing.

The new look AWI board meets next week after an intense three weeks of assessing where the organisation should be heading.

With a budget of $6 million and a staff of 15 people, the corporate affairs and public relations department appears to be the first cab off the rank in the rationalisation, but is not expected to be the last, according to AWI board member Chick Olsson.

"If there is true market failure we can invest and many of the present smaller research programs do not appear to pass that test. We need less projects but higher quality projects."

Mr Olsson said the $120m to be invested in revamping Woolmark through "Australian Merino" and "Superior Merino" could be redirected to other areas.