A "significant" number of staff at the almost 60 Catholic schools in the Hunter could be affected by role changes.
School staff across the Catholic Diocese of Maitland-Newcastle feel "isolated and anxious" as they fear they could lose their jobs in a planned restructure.
The Newcastle Herald understands staff across the diocese were pulled into a meeting about the changes on Monday morning.
They watched a pre-recorded briefing where they were told of the organisation's financial hardships and that individual principals would speak to the affected staff members.
Staff were reportedly told to keep details of the role changes confidential.
An education support worker at a Catholic school said they were told their role was being reduced and their colleague in a similar role would be out of a job.
"It just created this sense of panic and anxiety amongst staff, it was really stressful," they told the Herald.
They said affected staff felt "isolated and anxious" about how staffing changes had been handled.
"By the end of that day there were several people who'd been summoned," they said.
The staff member said they had worked hard on building up rapport with families only to see support for Indigenous students potentially reduced.
"I feel very disappointed and betrayed," they said.
NSW/ACT secretary of the Independent Education Union (IEU) Carol Matthews said the union had been asking the diocese for an overview of the number of employees affected.
"It is our understanding that there will be a significant number of staff and schools affected," Ms Matthews said.
Ms Matthews said the union believed a small number of staff in head offices were also affected.
The Newcastle Herald understands that primary school teacher librarians and some Aboriginal education workers were affected by the changes.
The IEU previously said they believed the restructure could lead to some redundancies.
More than 5000 staff educate more than 21,000 primary and secondary students attending 58 Maitland-Newcastle Catholic schools, stretching from Lake Macquarie to Port Stephens, the Manning Valley and the Upper Hunter.
The diocese also runs the St Nicholas Early Education centres, which opened 10 years ago.
According to their annual report filed with the Australian Charities and Not-for-profits Commission, the diocese had a net surplus of $10.7 million in 2025, after a $230,729 deficit in 2024.
In April, the Newcastle Herald reported that the diocese was looking to sell land in Cessnock that had initially been earmarked for a potential future high school.
Construction at the new Catherine McAuley Primary School in Medowie was nearing completion, with students expected to start next year.
A spokesperson for Catholic Schools Maitland-Newcastle previously said it was making staffing arrangements ahead of the 2027 school year.
"While the majority of staff will not be directly impacted, some roles and responsibilities will change as we align staffing structures with the needs and priorities of our schools," the spokesperson said.
The Newcastle Herald understands all impacted staff will be notified by Friday.
