BP has taken the knife to positions at its Kwinana oil refinery in Perth.
Around 20 per cent of its workforce, approximately 70 full time staff and 90 contractor roles, have been cut, according to The West.
BP stated that the cuts were a result of lower commodity prices, and necessary to continue operation of the site.
"BP remains committed to the future of Kwinana refinery however the Australian refining environment remains challenging and these changes are necessary to ensure Kwinana refinery's continued long term operation," the company said.
"This is aligned with the work we are doing to simplify and increase efficiency across BP globally.
"We believe this is a prudent and necessary response to the currently challenging market environment in which BP operates."
The move is another blow for refining in Australia, after BP announced plans to cease refining operations at its only other Australia refinery Bulwer.
At the time BP Australasia president Andy Holmes said the growth of extremely large refineries in Asia-Pacific was driving change within the fuel supply chain and put pressure on smaller scale plants.
"It’s against this background that we have concluded that the best option for strengthening BP’s long-term supply position in the east coast retail and commercial fuels markets is to purchase product from other refineries," Holmes said at the time.
"And while more of our transport fuel demand will be met by imports in future, ample supplies are available to maintain Australia’s energy security."
Earlier this year BP also announced a massive US$4.4 billion quarterly loss.