AURIZON CUTS 200 JOBS – BUT REMAINS CONFIDENT IN LONG-TERM GROWTH

Australia's largest rail freight company Aurizon has announced it will cut 200 full-time jobs in a bid to reduce costs.  

The decision was confirmed by Aurizon's Managing Director and Chief Executive Officer, Andrew Harding, with the release of the company's results for the 2024–2025 financial year yesterday. 

Harding said: "By reshaping Aurizon into a leaner, more agile organisation, we are positioning the business to compete effectively, capture growth opportunities as well as efficiently navigate market conditions." 

Aurizon had initially aimed for $50 million in savings, but an additional $10 million has been identified.  

"Importantly, all $60m has been actioned and will flow through in its entirety in FY2026," Harding continued.  

"These achievements are underpinned by our confidence in the long-term growth and earnings potential for Aurizon in markets for coal and bulk commodities including agriculture and critical minerals." 

The job cuts come after Aurizon registered a 25 per cent fall in profits compared to the previous year, with $303 million in net profits after tax.  

This is despite revenues increasing 3 per cent to $3.95 billion.  

The board has announced an on-market share buy-back of up to $150 million, which its FY2025 report said reflects its confidence in Aurizon's strong balance sheet, resilient cash flows and growth outlook. 

This follows the completion of a $300 million on-market buy-back in FY2025. 

Harding said FY2025 was a year of "strategic progress" for Aurizon, despite challenging market conditions in parts of the business.  

"We secured a landmark contract with BHP in South Australia, advanced regulatory certainty for the Network business, and accelerated our cost-out program, all while maintaining stable earnings in the Coal and Network businesses," he said.  

Aurizon's agreement for BHP's Copper South Australia operations, including rail and road haulage tasks, is one of Australia's largest ever road to rail conversions and has a total contract length of up to 15 years. 

Aurizon transports bulk commodities such as coal, iron ore and minerals from mines to ports, as well as delivering containerised freight.  

It manages more than 5100 kilometres of rail track, including the 2670-kilometre Central Queensland Coal Network.  

The operator is reportedly in talks to sell up to 49 per cent of its Queensland rail tracks, seeking bids of up to $4 million. 

The network is Australia's largest rail supply chain for exported coal, connecting more than 40 mines in Bowen Basin to five export terminals at three ports.