Santos Posts 25% Profit Fall, Plans to Cut 10% of Jobs

Santos unveiled plans to cut about 10% of staff and review its Australian Integrated Oil and Gas portfolio after reporting a sharp fall in annual profit on Wednesday.

Shares of Australia's No. 2 oil and gas producer closed 0.6% lower at A$6.63, after sliding as much as 3.8% earlier in the session.

The company said it will priorities a strategic review of its Australian integrated oil and gas portfolio in 2026, without giving details on scope or timing.

"While we think break-ups typically don't create value, Santos has a very large resource base that it has shown no intention to develop, and as a result, the market is currently putting zero value on these assets," said Dale Koenders, head of energy research at Barrenjoey.

Chief Executive Kevin Gallagher said that as Santos delivers its Barossa LNG offshore project and nears completion of the Pikka Phase 1 development in Alaska, those growth projects will transition into the company's "base business", reducing the need for peak construction staffing levels.

Santos employs about 4,028 people, according to its 2025 annual report, implying roughly 400 roles could be affected, though the company gave no further details.

"The market should like the targeted 10% headcount reduction