Woodside Energy will cut at least 500 jobs from its global workforce, about 10 per cent of staff, under cost-cutting plans aimed at saving $550 million a year from 2028. The gas giant announced the restructure today as part of a broader strategy to increase returns to investors, but it is unclear how many of the roles lost will be in Australia, where about 80 per cent of its workforce is based.
Chief executive Liz Westcott singled out the Scarborough gas project, about 375 kilometres off Western Australia's Pilbara coast, as one of the ventures that would bolster the company's finances, saying it was "80 per cent complete" and weeks away from shipping its first LNG cargo. The company also pointed to the North West Shelf, controversially allowed to keep operating until 2070, as a key project in its future plans, with the decision to extend the plant's life seen as enabling the contentious Browse gas project off the Kimberley coast. Woodside described Browse, which faces many hurdles, as a "growth option" and "one of Australia's largest undeveloped resources".
The cuts are the latest blow to Western Australia's resources sector after 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, with reports suggesting losses in the hundreds, and in October BHP said it would axe up to 300 jobs across its WA iron ore operations in the Pilbara.
WA Treasurer Rita Saffioti said she was "very disappointed" about the job cuts and that her government would continue "to bat for gas" as a key transition fuel for the state. "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," she said. "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."
WA Greens spokesperson Sophie McNeill said the cutbacks were "proof" Woodside was a fossil fuels company "in decline", and that it should not be allowed to drill for gas at Scott Reef as part of its Browse project.
Resources analyst Peter Strachan said Woodside was not a company in decline and had "money falling into its coffers" with high oil prices linked to the Iran war. He described the changes as Westcott, appointed permanent CEO in March, "stamping her authority over the organisation" with a "very strong focus" on shareholder value. He did not believe the cuts were imminent, suspecting action would be taken over the next six months and would include new energy projects involving hydrogen and ammonia, as well as Scarborough. He added that since Woodside had decided to phase down its exposure to ammonia, people working on that project may no longer be needed.
Analysis
Why This Matters
- About 10 per cent of Woodside's global workforce is affected, and with roughly 80 per cent of staff based in Australia, the distribution of the cuts will directly shape job prospects in Western Australia.
- The restructure follows iron ore lay-offs at Hancock and BHP this year, deepening concern about the state's resources sector.
- Woodside's plans for Scarborough and Browse will determine whether the cost-cutting is paired with long-term gas growth.
Background
Woodside Energy is a WA-based oil and gas company with LNG operations centred off the state's coast, and the vast majority of its workforce is in Australia. The restructure is part of a strategy to lift returns to investors after Liz Westcott became permanent chief executive in March. The company is also phasing down its exposure to ammonia, according to the resources analyst's comments.
Key Perspectives
- Rita Saffioti, WA Treasurer: said she was "very disappointed" and that the government would continue "to bat for gas" as a key transition fuel, urging Australia to keep supporting gas projects.
- Sophie McNeill, WA Greens spokesperson: called the cutbacks "proof" Woodside was a fossil fuels company "in decline" and opposed drilling at Scott Reef for Browse.
- Peter Strachan, resources analyst: argued Woodside was not in decline, that high oil prices linked to the Iran war were filling its coffers, and that the changes reflect Westcott's "very strong focus" on shareholder value.
What to Watch
- How many of the 500 job cuts fall in Australia, where about 80 per cent of the workforce is based.
- Whether Woodside proceeds with the Browse project, which the North West Shelf extension is seen as key to enabling.
- The timing of the cuts: Strachan expects action over the next six months, including on hydrogen and ammonia projects.
Checked
12 claims in this story checked against 2 sources: 9 supported.
Show each claim
- SupportedWoodside will cut at least 500 jobs from its global workforce.Just In: “Gas giant Woodside Energy has announced it will axe at least 500 jobs from its global workforce”
- Reports differThe cuts are expected to save $550 million a year from 2028.Just In: “plans to cut costs by $550 million a year from 2028”
- SupportedThe planned cuts equal about 10 per cent of Woodside’s workforce.Just In: “The planned job cuts equate to about 10 per cent of its workforce”
- Partly supportedAbout 80 per cent of Woodside’s workforce is based in Australia.WA Today - Latest News: “As at the end of 2025, we had roughly 5000 employees, including around 3700 in Australia, most of whom were based in WA,”
- SupportedThe restructure is part of a broader strategy to increase returns to investors.Just In: “The restructure was announced today as part of a broader strategy to increase returns to investors”
- Reports differLiz Westcott said Scarborough was “80 per cent complete”.Just In: “She said the project, located about 375 kilometres off WA's Pilbara coast, was "80 per cent complete"”
- SupportedScarborough was weeks away from shipping its first LNG cargo.Just In: “and just weeks away from shipping its first LNG cargo.”
- SupportedSaffioti said she was “very disappointed” about the cuts.Just In: “WA Treasurer Rita Saffioti said she was "very disappointed" about the job cuts”
- SupportedSaffioti said: “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”.Just In: ““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,” Ms Saffioti said.”
- SupportedThe North West Shelf was allowed to keep operating until 2070, and its extension is seen as enabling Browse.Just In: “The North West Shelf, which was controversially given the green light to keep operating until 2070, was also 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.”
- SupportedWoodside described Browse as a “growth option” and “one of Australia’s largest undeveloped resources”.Just In: “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".”
- SupportedStrachan said Woodside had “money falling into its coffers” with high oil prices linked to the Iran war.Just In: “Resources analyst Peter Strachan said Woodside was certainly not a company in decline, and had "money falling into its coffers" with high oil prices linked to the Iran war.”