Australia’s largest energy employer laid off employees via email
Employees at Woodside Petroleum are confronting an uncertain future as the company initiates a reorganization that could lead to job cuts across its Australian Operations and Projects.
On Tuesday morning, employees received emails informing them of the impending changes, which are set to take effect within a week. "Today, we are beginning consultations with impacted employees across Australia Operations and Projects," the email addressed to affected groups managing the Macedon gas plant and Woodside's offshore oil vessels stated.
Woodside plans to notify affected workers promptly about their employment status, aiming to finalize these decisions swiftly. "Following separation conversations, notifications will occur for those remaining in the organisation, so everyone will know their role, team, and structure going forward," the communication added.
The restructuring is part of broader reviews across Woodside's Australian Operations, reflecting efforts to ensure safety, maximize operational value, and enhance cost resilience as certain portfolio segments face production declines.
In an effort to minimize layoffs, Woodside has pledged to prioritize redeploying affected workers to other roles within the company. Despite ongoing expansions, such as the Pluto gas plant near Karratha, intended to process gas from the Scarborough field, other assets in Western Australia (WA) are facing uncertain futures.
Notably, production at offshore gas fields supplying the North West Shelf gas export plant—Australia's largest—has been declining, with plans to permanently shut down one of its processing trains this year.
Additionally, the Macedon gas plant anticipates reduced gas supply annually. These workforce adjustments come shortly after Woodside restructured its top management, with separate officers now overseeing Australian and Houston-based international regions.
As of the end of 2023, Woodside employed approximately 4,667 people globally, marking an increase of nearly 1,000 employees since acquiring BHP's petroleum division two years prior.
Australia housed 3,563 staff members, while 1,104 worked overseas, primarily in the United States.
According to WAtoday, Woodside declined to specify the number of job losses expected or comment on potential cuts in its international regions when questioned. However, a company spokeswoman emphasized that workforce reviews are routine and aimed at aligning with business priorities while ensuring operational safety and reliability.
The news has sparked concern among Woodside employees and industry observers, highlighting the broader economic impact and uncertainties within Australia's energy sector.
Woodside Petroleum continues to navigate challenges amidst evolving market conditions and regulatory landscapes, striving to maintain its operational efficiency and strategic resilience amid these organizational changes.
This development underscores ongoing challenges within Australia's energy industry, where companies must balance operational demands with workforce considerations in a competitive and dynamic global market.
As developments unfold, stakeholders await further updates from Woodside regarding the specific implications of these workforce adjustments on its operations and strategic objectives moving forward.