Woodside Energy to shed 10% of workforce as annual savings target rises

Australian oil and gas producer Woodside Energy plans to cut more than 500 jobs globally, representing at least 10% of its workforce, as it steps up efforts to reduce operating costs and improve business efficiency.

The company announced the workforce reduction alongside an increase in its annual cost-saving target to $400 million from $350 million. The full benefits of the savings programme are expected to flow through from 2028.

The proposed reduction represents at least 10% of Woodside's 4,693 employees, based on its December 2025 workforce figures.

The company has not yet disclosed which departments, business units or geographical locations will be affected by the cuts.

The restructuring forms part of Woodside's broader efforts to streamline operations, improve productivity and concentrate resources on business areas expected to deliver stronger returns.

Woodside has increased its annual cost-reduction target by $50 million,taking it to $400 million. The revised target is higher than the US$350 million outlined in its half-yearly report in August.

Liz Westcott, Chief executive said, “Woodside has world-class assets, deep operating and project capabilities and enduring customer relationships.”

“Our priority now is to extract more value from our portfolio. We are targeting US$400m 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,” she told the investors.

Changing business priorities

Alongside the cost-cutting programme, Woodside is targeting a portfolio return on average capital employed of 12% to 15% by the mid-2030s, supported by a new capital framework and shareholder distribution policy.

The company is also aiming to reduce its Scope 1 and 2 greenhouse gas emissions intensity by 30% by 2035, compared with its 2025 baseline.

The latest announcement marks a significant workforce reduction as Woodside seeks to balance operational efficiency, cost management and long-term investment priorities.