Arrow Energy is expected to make some unwanted announcements this week, with reports it is preparing to wind back its commitment to the $10 billion Gladstone LNG project and sack several hundred workers.

News Corp media claim Arrow managers are heading to sites at Moranbah and Dalby this week to begin cutting up to a third of staff from the company’s gas-related ventures.

This could mean up to 400 employees will go from a total group of 1200.

There has been no official word so far, and the company says “we do not comment on speculation”, according to a Queensland newspaper.

The potential moves this week come from an announcement by Arrow CEO Andrew Faulkner last week, who said the board has recently ratified performance bonuses, and that bonuses will be paid to all staff.

Insiders allege cleaning contractors at Arrow Energy’s Brisbane head office have been told the number of floors to be cleaned will be reduced from 10 to five, just 10 months after a $30 million fit out and the signing of a 10-year $200 million lease.

Arrow has already ditched about 60 full-time contractors and ended its graduate program as well. With its 50-50 owners Shell and PetroChina looking to cut costs wherever they can, reports say more heads will roll at Arrow Energy soon.