Workforce reduction part of annual structural cost reductions from 2028
Woodside Energy is cutting more than 500 roles from its global workforce as part of the Australian energy giant's move to reduce costs by US$400 million from 2028.
The company revealed the cuts during its Capital Markets Day on 5 November.
"We are targeting US$400 million of annual structural cost reductions from 2028, improving operational efficiency and productivity, and actively managing the portfolio to concentrate capital where it earns the highest returns," said Woodside chief executive officer and managing director Liz Westcott at the event.
Woodside's delivery pathways to reaching this these annual structural cost reductions include cutting more than 500 roles globally, though it did not specify which parts of the workforce would be hit.
ABC News reported that the cuts are equivalent to 10% of Woodside's workforce, of which 80% are based in Australia, particularly in Western Australia.
The energy giant's other cost-reduction plans include AI-enabled maintenance planning, supply chain optimisation, risk-based contracting processes, and portfolio optimisation, including Calypso, Sunrise, and Bonaparte carbon capture and storage (CCS).
Western Australia Treasurer Rita Saffioti said she was "very disappointed" for the workers who will lose their jobs, but maintained that the government would go "in to bat" for gas as a key transition fuel, 7News reported.
"On any given day there are people saying that shouldn't support gas projects, and then on other given days people are that we want to make sure we get strong employment," Saffioti said as quoted by the news outlet.
"We are a resources state. Gas is an integral part of our energy supply, and let's keep supporting the gas sector as part of our overall economic vision."
The cuts at Woodside come amid similar workforce reduction measures from other resources firms in Australia, ABC News reported.
Gina Rinehart's Hancock Iron Ore confirmed job cuts in June at its Roy Hill operations, with the scale reportedly impacting hundreds of staff.
BHP in October also revealed that it will eliminate up to 300 jobs across its WA iron ore operations in the Pilbara.
