First wave of Whyalla steelworks redundancies begins as workers face uncertain future

More than 250 workers to leave plant as blast furnace closure cuts workforce from 1,700 to 1,200

By LineZotpaper

Published14 October 2026

Read Time3 min

Sources2 outlets

The first workers to accept redundancies at the Whyalla steelworks will finish up this week, with more than 250 roles set to disappear after the permanent closure of the blast furnace last month. Those staying on still face an anxious wait for their fate to be decided.

The first of more than 250 workers to accept redundancies at the Whyalla steelworks will finish up this week, but those who want to stay are still facing an anxious wait. The permanent closure of the blast furnace last month will reduce the plant's direct workforce from 1,700 to 1,200, while at least another 300 contractor roles will also be affected.

Australian Workers' Union organiser Shane Karger said he expected about 270 direct employees to accept "genuine redundancies" by the end of this month, with the first group exiting by this Friday. After that, voluntary redundancy and early retirement scheme applications will be processed.

Mr Karger said genuine redundancies apply to workers whose roles are no longer required, such as those who worked at the blast furnace, while voluntary redundancies will go to workers in departments that will reduce their numbers but not shut down entirely. The final number of redundancies should be known by November, he said, which "will then sort out how many positions are up for redeployment."

Even for those who stay on, it is unclear what the future will look like. The steelworks has been in administration since early last year, with the announcement of a buyer expected by the end of 2026. Mr Karger said unions have been working with administrators KordaMentha to make the process as fast and smooth as possible.

"There's been a lot of emotion," he said. "There's those that are young, they've got a mortgage ... they're now thinking 'what the hell am I going to do now?' You've got other workers that are looking forward to a well-earned rest after a very long career at the steelworks."

Several contractors have confirmed to the ABC that they have already laid off staff, with more than one closing down entirely.

Jack Taylor, 30, has done manual labour at the steelworks for 10 years but will clock off for the final time this week. His was one of the roles being cut and he has opted not to apply for redeployment, instead accepting a redundancy. "It was a big decision to make," he said. "I own my house here in Whyalla so going for redeployment [would have] meant I'd have a chance of keeping a job, having income coming in."

Analysis

Why This Matters

More than 250 direct jobs and at least 300 contractor roles are being cut at one of South Australia's largest industrial sites, with the first workers leaving this week.
The blast furnace closure raises questions about the long-term future of steelmaking in Whyalla, a town built around the steelworks.
The sale process, with a buyer announcement expected by the end of 2026, will determine how many remaining workers are redeployed and what form the plant takes.

Background

The Whyalla steelworks has been in administration since early last year, after the South Australian government moved to intervene in the plant's crisis. The permanent closure of the blast furnace last month triggered a major workforce reduction, cutting the direct workforce from 1,700 to 1,200. Administrators KordaMentha have been managing the process, and a buyer is expected to be announced by the end of 2026. The redundancies are being handled in stages: genuine redundancies for workers whose roles no longer exist, followed by voluntary redundancies and early retirement applications in departments that are shrinking but not closing.

Key Perspectives

Whyalla workers: Those accepting redundancies face immediate uncertainty, including younger workers with mortgages who are unsure of their next step, while longer-serving workers may see it as the end of a long career. Unions: The Australian Workers' Union is working with administrators to process redundancies quickly and smoothly, and to determine how many positions remain available for redeployment. Contractors: Several contracting firms have already laid off staff, with more than one closing down entirely, extending the job losses beyond the steelworks' direct workforce. Administrators and future buyer: KordaMentha is managing the transition, and the expected sale announcement by the end of 2026 will shape the plant's future, though details of any buyer's plans are not yet known.

What to Watch

The final redundancy count expected by November, which will determine how many redeployment positions remain.
The announcement of a buyer for the steelworks, expected by the end of 2026.
Further contractor job losses and any signs of wider economic impact on Whyalla.
Signals from the new owner about the plant's long-term operations, including whether steelmaking continues.

Sources

'A lot of emotion:' First round of redundancies to hit Whyalla steelworks — Latest business news
'A lot of emotion:' First round of redundancies to hit Whyalla steelworks — Just In