Woodside Energy to slash more than 500 jobs as part of cost-cutting measures

Major corporate restructuring is hitting the resources sector as Woodside Energy announced plans to cut at least 500 jobs from its global workforce. The sweeping overhaul involves cutting approximately ten per cent of total personnel under a newly unveiled savings blitz targeting annual reductions starting from 2028.

The company's global workforce numbers sit around 4,600 to 4,700 total employees, with approximately 3,700 personnel based in Australia. Because roughly 80 per cent of the total workforce is located domestically and the vast majority stationed in Western Australia, regional operations face heightened uncertainty regarding where the actual axe will fall.

Chief executive Liz Westcott, who took the helm in March, highlighted that the company is currently navigating its busiest-ever development phase. Projects such as the Scarborough gas development off the Pilbara coast, the Trion oil fields in the Gulf of Mexico, and the Louisiana LNG project in the United States form the backbone of this expansion. According to corporate figures, these ventures are projected to drive sales volume growth exceeding 30 per cent by 2032, pushing output toward approximately 280 million barrels of oil equivalent, while generating substantial adjusted operating cash flow over the next several years.

The strategic shift also introduces a revised dividend policy alongside a forecast return on capital target aimed at 12 per cent to 15 per cent by the mid-2030s. The North West Shelf, which was controversially given the green light to keep operating until 2070, was singled out as a key project in the company's future plans. The decision to extend the life of the gigantic gas plant is seen as the key to enabling the contentious Browse gas project off the Kimberley coast. Despite facing many hurdles to developing Browse, Woodside identifies the gas fields as a growth option as part of its long-term strategy, describing it as one of Australia's largest undeveloped resources.

Metric / Project	Reported Figures & Details
Job Reductions	At least 500 roles (approx. 10 per cent of workforce)
Targeted Savings	$US400 million ($550 million to $571 million) annually from 2028
Domestic Footprint	~80 per cent of workforce based in Australia (roughly 3,700 workers)
Scarborough Project Status	Located 375km off the Pilbara coast; 80 per cent complete, shipping first LNG cargo imminently
Projected Cash Flow	More than $US40 billion in adjusted operating cash flow from 2027 to 2032

The job cuts arrive as the latest blow to the state's resources sector following a series of lay-offs in the iron ore industry this year. In June, Gina Rinehart's Hancock Iron Ore confirmed job cuts at its Roy Hill operations. In October, BHP announced it would axe up to 300 jobs across its WA iron ore operations in the Pilbara, with a company spokesperson stating the changes were necessary to continue making a significant contribution to the region and the state.

Reaction to the Woodside downsizing has drawn mixed responses from political leaders and market observers. WA Treasurer Rita Saffioti declared she was very disappointed by the job losses, while simultaneously reaffirming governmental support for the state's gas sector as an integral transition fuel.

"On any given day there are people saying that we shouldn’t support gas projects, and then on other given days people are saying that we want to make sure we get strong employment,"

Rita Saffioti, WA Treasurer and Deputy Premier, via ABC News

Ms Saffioti argued that Australia needed to make key decisions about whether the country supported resources and gas projects, adding that Western Australia remains a resources state where gas forms an integral part of energy supply.

Conversely, WA Greens spokesperson Sophie McNeill argued that the cutbacks prove the company is a fossil fuels company in decline and urged that it should not be allowed to drill for gas at Scott Reef as part of its Browse project. Challenging the decline narrative, resources analyst Peter Strachan argued that the company enjoys strong financial backing with money falling into its coffers, bolstered by elevated oil prices linked to the Iran war. Mr Strachan characterized the restructure as the chief executive stamping her authority over the organisation with a very strong focus on shareholder value. He noted that personnel previously dedicated to phased-down ventures—such as ammonia and hydrogen projects, as well as the Scarborough project—might be redeployed or deemed surplus once major construction phases conclude.

What to Watch Next

• Upcoming cargo shipments from the Scarborough gas project off Western Australia's coast by the end of the year.
• Further announcements and potential action regarding the exact geographic distribution of the 500 planned job cuts over the coming six months.
• Milestones for overseas ventures, including the Trion oil fields coming on stream in 2028 and Louisiana LNG in 2029.