Woodside Energy announces job cuts and cost-saving measures amid shifting energy strategy

Consensus Summary

Woodside Energy, Australia’s largest oil and gas company, has announced plans to cut at least 500 jobs globally—nearly 10% of its workforce—as part of a cost-saving strategy to reduce annual expenses by $US400 million ($A570 million) starting in 2028. The job losses, which will begin over the next six months, reflect broader efforts to streamline operations and prioritize shareholder returns amid fluctuating oil prices. Both ABC and 7NEWS report that the company’s Scarborough Liquefied Natural Gas (LNG) project, located 375 kilometres off Western Australia’s Pilbara coast, is a key focus, with ABC stating it is 80% complete and set to ship its first cargo by the end of 2026. The project, valued at $17 billion, is expected to significantly boost Woodside’s financial performance in the coming years.

The decision to slash jobs follows a period of volatility in the energy sector, with Woodside’s CEO, Liz Westcott, appointed in March 2026, immediately shifting the company’s strategy toward cost efficiency and investor returns. Woodside’s workforce of 4,700 employees, with 3,700 based in Australia, underscores the potential impact of the cuts, particularly in Western Australia, where the gas industry is a cornerstone of the state’s economy. The company’s North West Shelf project, approved to operate until 2070, remains a critical asset, with its extension seen as essential for advancing the controversial Browse gas project off the Kimberley coast, which Woodside describes as a major growth opportunity.

Key figures in the energy sector have responded to the job cuts with mixed reactions. WA Treasurer Rita Saffioti, while disappointed by the losses, reaffirmed her government’s support for the gas sector as a transition fuel, arguing that Australia must balance environmental concerns with economic stability. Liz Westcott, Woodside’s CEO, emphasized the company’s commitment to generating strong cash flows into the next decade, highlighting a $13 billion return to shareholders since 2022. Analysts, such as Peter Strachan, cited in ABC, suggest the cuts are part of a broader restructuring to focus on high-value projects, including hydrogen and ammonia, though Woodside has since scaled back its ammonia exposure.

While both outlets agree on the core details of the job cuts and cost-saving measures, there are differences in emphasis. ABC focuses on the Scarborough project’s completion status and its role in Woodside’s long-term strategy, including the Browse project’s potential, while 7NEWS highlights Woodside’s financial targets, such as a 12% to 15% return on investments by the mid-2030s and a 32% production increase to 280 million barrels of oil equivalent by 2032. Additionally, 7NEWS notes Woodside’s recent 20-year LNG supply deal with QatarEnergy, set to begin in 2030, and the company’s share price drop of 5.5% on November 5, 2026, due to oil price declines. ABC, meanwhile, provides more context on recent job cuts in Western Australia’s iron ore sector, framing Woodside’s moves as part of a broader industry trend.

The immediate impact of the job cuts remains uncertain, though Woodside has indicated that affected employees may be redeployed or deemed surplus to requirements. The company’s focus on Scarborough and its broader portfolio suggests a shift toward maximizing returns from existing assets while exploring new energy projects. WA’s Chamber of Minerals and Energy has warned that without federal support for gas projects, the state’s economy could suffer, calling for exemptions from proposed national reservation schemes. As Woodside navigates these challenges, the next steps will likely involve finalizing cost reductions, securing long-term contracts like the QatarEnergy deal, and determining the fate of projects such as Browse, which remains a contentious but strategically important venture.