Woodside Energy Cuts 500 Jobs in $400 Million Plan

Woodside Energy Group Ltd is implementing a US$400 million annual cost-reduction program beginning in 2028, a move that includes the elimination of more than 500 jobs. Chief Executive Liz Westcott announced the measures during a capital markets day on Thursday, signaling a strategic shift from major project construction toward efficiency and portfolio optimization.

The savings target, measured against the 2025 cost base, is divided into three primary streams: US$170 million from reduced external expenditure, US$130 million from process improvements, and US$100 million from portfolio optimization. To reach these goals, the company intends to deploy AI-enabled maintenance planning and improve supply-chain efficiencies.

Alongside the cost-cutting measures, the company is overhauling its dividend policy to increase the share of operating cash flow returned to shareholders. The new framework establishes a base dividend of 20% of adjusted operating cash flow, with an option to return an additional 20% through extra dividends or share buybacks. This replaces the previous policy, which was based on underlying net profit after tax.