Woodside Energy to Cut At Least 500 Jobs in $550 Million Cost-Reduction Plan

Australian energy major Woodside Energy has announced plans to cut at least 500 jobs across its global operations as part of a strategic initiative to reduce annual costs by $550 million from 2028. The reduction represents nearly 10 percent of the company's total workforce. While it remains unconfirmed how many redundancies will affect Australian operations, approximately 80 percent of Woodside's staff is based in Australia, primarily in Western Australia.

Corporate Restructure and Major Gas Projects

The restructure was outlined alongside plans to enhance shareholder returns. Woodside Chief Executive Liz Westcott highlighted key ventures expected to strengthen the company's financial standing, including the $17 billion Scarborough gas project located in the Carnarvon Basin, roughly 375 kilometers off Western Australia's Pilbara coast. Westcott stated that the Scarborough development is 80 percent complete and weeks away from dispatching its first liquefied natural gas (LNG) cargo.

Woodside also identified the North West Shelf operation—which has received approvals to continue operating until 2070—and the proposed Browse gas project off the Kimberley coast as crucial long-term assets. The company categorizes the Browse fields as a primary growth option, citing it as one of the largest undeveloped energy resources in Australia.

Reactions and Impact on Western Australia

The announced redundancies follow previous employment contractions across Western Australia's mining sector. Earlier this year, Hancock Iron Ore confirmed job reductions at its Roy Hill operations, while BHP announced up to 300 job cuts across its Pilbara iron ore business in October.

Western Australian Treasurer and Deputy Premier Rita Saffioti expressed disappointment regarding the job losses but reaffirmed government backing for the gas industry. Saffioti emphasized the sector's role in the state's energy supply and economic strategy, urging continued support for resources projects. Conversely, WA Greens spokesperson Sophie McNeill criticized the company's trajectory, arguing the cutbacks indicate a declining sector and opposing Woodside's plans to develop the Browse project at Scott Reef.