AGL to cut up to 300 jobs ahead of $20bn investment in renewable energy and battery storage

AGL Energy is preparing to cut hundreds of jobs as it accelerates its ambitious shift away from coal, aiming to free up billions for investment in renewable energy and battery storage.

The company, with its largest shareholder being tech-billionaire Mike Cannon-Brookes, has begun consultations with staff ahead of planned reductions expected to affect management and operational roles across its operations.

Early estimates suggest up to 300 positions could be lost.

A spokesperson for AGL said the move was part of broader efforts to “ensure that today’s business remains productive and competitive in this changing market while we continue to invest in our business for tomorrow”.

“As part of this focus, we’re proposing changes to our organisational structure and reviewing both labour and non-labour costs to improve productivity and embed cost discipline across the enterprise,” the spokesperson said.

“We understand this may be a difficult time for our people and we’re committed to communicating with transparency and respect and providing support throughout the consultation process.”

The job cuts are linked to AGL’s multibillion-dollar plan to retire ageing coal-fired power stations and replace them with low-emissions energy.

The company has committed to spending up to $20bn by 2035 to deliver about 12 gigawatts of new solar, wind, and battery capacity, including 6GW of renewable and storage assets by 2030, up from its previous 5GW target.

The transition comes as Australia’s largest single carbon emitter faces growing pressure from investors, governments, and customers to decarbonise while protecting profits.

Mr Cannon-Brookes has pushed for faster emissions reductions and larger-scale renewable investments, while other investors urge AGL to maintain capital discipline and safeguard dividends.

The company warned that near-term earnings could be affected, forecasting underlying profit in 2026 between $500m and $700m, compared with $640m in 2024-25.

The looming job losses have drawn strong criticism from unions.

Grahame Kelly, general secretary of the Mining and Energy Union, described the cuts as a “kick in the guts” for workers ahead of Christmas.

“Coal-fired power station workers around the country are already facing stress and uncertainty with moving timelines for closures. News that hundreds of jobs will be cut as soon as this December is a further blow,” Mr Kelly said.

The MEU said AGL plans to seek expressions of interest for voluntary redundancies, with forced redundancies an option if targets are not met. Cuts are expected to take effect from the first week of December.

“With a framework for worker transition support now in place through the federal government’s Net Zero Economy Authority, we are very concerned about energy companies fast-tracking job cuts to avoid potential retraining and redeployment obligations in future,” Mr Kelly said.

The union is calling for AGL to “do the right thing by its loyal workforce that have powered our country for decades” and warned government intervention may be needed to protect workers at the Bayswater and Loy Yang A power stations as they approach closure.

AGL is expected to conclude consultations in the coming weeks, with final decisions on affected roles due before the end of the year.