Australia's Santos Ltd. announced plans to reduce its workforce by 10% following a sharp decline in annual profit driven by weaker oil and gas prices. The move comes as the country's second-largest natural gas producer grapples with challenging market conditions that have squeezed margins across the energy sector.

The workforce reduction targets cost savings as Santos navigates a difficult pricing environment. Lower commodity prices have pressured earnings for energy companies globally, forcing producers to streamline operations and reduce expenses. Santos joins other major energy firms implementing similar cost-cutting measures in response to market volatility.

This decision reflects the broader challenges facing Australia's natural gas industry as companies adjust to sustained price weakness. The headcount reduction signals Santos' commitment to maintaining financial stability despite unfavorable market conditions. Industry analysts suggest such workforce adjustments are becoming increasingly common as energy producers seek to balance operational efficiency with market realities.