{"id":109280,"date":"2026-02-19T11:30:00","date_gmt":"2026-02-19T00:30:00","guid":{"rendered":"https:\/\/en.econostrum.info\/au\/?p=109280"},"modified":"2026-02-18T21:14:08","modified_gmt":"2026-02-18T10:14:08","slug":"santos-hits-reset","status":"publish","type":"post","link":"https:\/\/en.econostrum.info\/au\/santos-hits-reset\/","title":{"rendered":"Santos Hits Reset: Why 10% of Its Workforce Is Losing Their Jobs"},"content":{"rendered":"\n

Santos, one of Australia\u2019s largest oil and gas companies, is facing tough times. With profits slipping, the company is restructuring, which includes cutting 10% of its workforce. But what does this mean for the future of the company and its employees? Let\u2019s break it down.<\/p>\n\n\n\n

Tough Times for Santos<\/h2>\n\n\n\n

Santos, based in Adelaide, has announced that it will reduce its workforce by about 400 employees, which makes up 10% of its total staff. This decision comes after the company reported a significant decline in annual profits, with a 33% drop in net profit to $818 million and a 25% fall in underlying profit. The company\u2019s revenue also slipped from $5.4 billion to $4.9 billion year-on-year. The reason for the profit slump? Weaker realized prices, inflationary pressures, and the rising costs associated with its oil and gas projects, explains The Australian<\/a>.<\/p>\n\n\n\n

While these figures are concerning, Santos is not just sitting back and accepting the downturn. CEO Kevin Gallagher has indicated that the company is undergoing a strategic review of its Australian oil and gas portfolio, which could involve asset sales or a broader reshaping of its domestic operations. The company aims to “rightsizing the business” as it moves major projects like Barossa and Darwin LNG from construction to steady-state operations.<\/p>\n\n\n\n

\nhttps:\/\/twitter.com\/7NewsAdelaide\/status\/2024001908122570794\n<\/div><\/figure>\n\n\n\n

Shifting Focus: From Growth to Stability<\/h2>\n\n\n\n

The job cuts come as part of a broader shift in focus. Santos is transitioning away from major capital-intensive projects towards generating cash flow. The company hopes that by stabilizing its operations and reducing costs, it will be able to improve its financial health in the long term. This move is particularly important after a failed takeover bid from Abu Dhabi\u2019s ADNOC, which left some investors scrambling for reassurance. The company is now leaning into its free cash flow, which stood at $1.8 billion in 2025, as it seeks to demonstrate discipline and return value to shareholders.<\/p>\n\n\n\n

It\u2019s clear that the company is trying to adapt, aiming to boost cash generation as its projects mature and move into steady production.<\/p>\n\n\n\n

What\u2019s Next for Santos?<\/h2>\n\n\n\n

While the company\u2019s immediate future looks a bit rocky, there\u2019s still hope for recovery. Santos is betting on higher production in 2026, with a projected output of 101 to 111 million barrels of oil equivalent. The Barossa project, which will provide long-life LNG supply through Darwin, is expected to be a significant revenue driver. However, this restructuring comes at a delicate time for Santos. Its share price has been lagging behind global energy peers, and with the ADNOC takeover deal gone, shareholders are focusing more intently on capital discipline and sustainable returns.<\/p>\n\n\n\n

It\u2019s not all doom and gloom though\u2014Santos still sees growth potential from its new assets, but it will need to overcome the challenges of a fluctuating energy market.<\/p>\n\n\n\n

The Long Road Ahead<\/h2>\n\n\n\n

Santos is facing a tough road ahead, but it\u2019s trying to adjust. The job cuts<\/a> and strategic review are a clear sign that the company is pivoting from a growth mindset to one focused on stability and profitability. While this transition might be difficult for some employees, it could ultimately set Santos up for long-term success in an ever-changing energy landscape. Only time will tell if this restructuring will pay off, but for now, the company is committed to staying disciplined and managing its operations with caution.<\/p>\n","protected":false},"excerpt":{"rendered":"

Santos is cutting 10% of its staff and launching a strategic review after a significant profit drop. What\u2019s next for the company\u2019s future?<\/p>\n","protected":false},"author":14,"featured_media":109281,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[44],"tags":[],"class_list":["post-109280","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33","no-featured-image-padding"],"_links":{"self":[{"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/posts\/109280","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/users\/14"}],"replies":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/comments?post=109280"}],"version-history":[{"count":1,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/posts\/109280\/revisions"}],"predecessor-version":[{"id":109282,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/posts\/109280\/revisions\/109282"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/media\/109281"}],"wp:attachment":[{"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/media?parent=109280"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/categories?post=109280"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/tags?post=109280"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}