‘We’ll bat for gas’: Saffioti defends sector in wake of Woodside job cuts

WA Treasurer Rita Saffioti has urged the community to support the gas industry as part of the state’s overall economic vision after Woodside announced it will cut more than 500 jobs from its global workforce.

Speaking at its Capital Markets Day in Sydney, Woodside chief executive and managing director Liz Westcott told shareholders the company wants to reduce its annual structural costs by more than $570 million, with 500 jobs to go by 2028.

“We are targeting US$400 million 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 said.

“We are targeting portfolio return on average capital employed of 12–15 per cent by the mid-2030s.”

Westcott added that the company has also set a new 2035 net equity Scope 1 and 2 greenhouse gas emissions intensity target of 30 per cent below its 2025 gross equity Scope 1 and 2 greenhouse gas emissions intensity baseline.

“The new target reflects our focus on improving operational efficiency where safe, technically and commercially appropriate,” she said.

Saffioti said while she felt sad for the workers who will lose their jobs, the state will continue to support the gas industry in the face of the latest job cuts.

“We’ve got to make some very key decisions in this country about do we support resource projects and gas projects?” she said.

“What we’ve seen is a lot of debate out there. But companies need confidence that the state and the government support them and the communities support them.

“So that’s why we continue to be very supportive of new projects. And in particular, note that gas is a very, very important source of energy in this state and across the nation, and will continually go in to bat for gas being a key transition fuel for our state.”

Saffioti said Western Australia was a resources state and the gas industry was integral to energy transition.

“Gas is an integral part of our energy supply, and let’s keep supporting the gas sector as part of our overall economic vision,” she said.

WA Greens MLC Sophie McNeill said the announced savings cuts are further proof that Woodside cannot be allowed to proceed with their proposal for a “massive new carbon bomb” on top of Scott Reef.

“This is proof that Woodside is a company in decline,” she said.

“We need a managed fossil fuel phase out now, so workers can be transitioned away from the dying oil and gas industry into jobs in the new green energy transition.

“A dying company cannot be trusted to manage such a delicate, precious ecosystem that is home to so many endangered animals when they are already trying to cut costs.

“How can Woodside be trusted with Scott Reef when they can’t even keep their company afloat without shedding 10 per cent of their employees?”

Saffioti said while there was currently a feeling of uncertainty in the state, WA’s economic fundamentals remain strong.

“When you look at all the key indicators, things like business investment are still very, very strong in this state,” she said.

“We’ve seen spending continue to grow. We’ve got population growth, which also helps support the economy.

“So many of our economic fundamentals are very strong.”

The West Australian-headquartered company has about 5500 employees around the world with major offices in Melbourne, Houston, London and Singapore.

The group outlined the cost-cutting measures in a capital markets day briefing on Thursday, saying they included optimising its portfolio, introducing AI-enabled maintenance planning, tweaking supply chains and reducing its headcount.

The bulk of Woodside’s employees are based in Western Australia, around 85 per cent, but the company has not detailed where most of the job cuts will be made.

The oil and gas producer’s relatively new chief executive Liz Westcott has moved recently to streamline the business, striking a $285 million deal last month to sell a 33.44 stake in the Timor Sea’s Greater Sunrise gas resource to the Timor-Leste government, offloading its Calypso gas project in Trinidad to BP, and selling its share of the Bonaparte carbon capture venture to Inpex.

At the same time, the US-Israeli war with Iran is constricting supply from traditional oil and gas producers in the Middle East delivering a huge windfall for Australian gas exporters.

New figures released last month suggest soaring fossil fuel prices could add $23 billion to the combined revenue of Australia’s majors this year.