By Peter Milne
Woodside workers face an anxious wait to see who has kept their job after receiving emails on Tuesday morning about a reorganisation to take effect in a week’s time.
“Today, we are beginning consultations with impacted employees across Australia Operations and Projects,” employees of one affected group who manage the Macedon gas plant and Woodside’s offshore oil vessels were told.
Woodside made a profit of $US 1.66 billion in 2023, down 74 per cent as high gas prices due to Russia’s invasion of Ukraine receded.Credit: Getty
Woodside plans to tell affected workers as soon as possible, the email seen by this masthead said.
“Following separation conversations, notifications will occur for those remaining in the organisation, so everyone will know their role, team and structure going forward,” it reads.
“Similar reviews have also taken place across Australian Operations, recognising the need for us to remain safe, maximise value, and ensure that we are cost resilient as parts of our portfolio begin to enter production decline.”
Workers were told Woodside would maximise the number of workers redeployed elsewhere in the company to reduce layoffs.
While Woodside is expanding the Pluto gas plant near Karratha to process gas from the Scarborough gas field the other assets it operates in Australia – all in WA – face an uncertain future.
Production of gas offshore to feed the North West Shelf gas export plant – Australia’s first and largest – is declining with one of its five processing trains planned to be permanently shut down this year. The Macedon gas plant is also predicted to face reduced gas supply each year.
The cuts come weeks after Australia’s largest oil and gas company reorganised its top management with its Australian and Houston-based International regions reporting to different operating officers.
Woodside had 4667 employees across the world at the end of 2023, according to it annual report, almost 1000 more than two years ago before it bought BHP’s petroleum division. Australia was home to 3563 staff and 1104 worked overseas, predominantly in the United States.
The company was asked how many employees would lose their jobs and if the International region would also suffer cuts, but it did not provide answers.
A Woodside spokeswoman said the company routinely reviews its workforce needs “to ensure alignment with business activities and priorities, while ensuring safe and reliable operations.”
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