Managing the Human Impact of Change: Insights from the Hazelwood Power Station Closure

At Choice Dakin, we’ve had the privilege of supporting large-scale industrial organisations through significant operational and workforce changes. ENGIE’s closure of the Hazelwood Power Station and Mine is a compelling example of how a structured, people-centred approach can support employees, stakeholders, and communities through profound disruption.

The Business Context

In May 2016, ENGIE’s CEO announced to a French parliamentary committee that the company planned to gradually withdraw from coal-fired power generation globally. Hazelwood was immediately under scrutiny as one the OECD’s least efficient power station.

At the time, Hazelwood was a critical part of Victoria’s energy infrastructure, providing:

  • 25% of Victoria’s baseload electricity
  • 3% of the national electricity market

The site directly employed 460 workers and a further 300 contractors, most residing in the Latrobe Valley, a regional community of 75,000 whose economy was heavily reliant on coal power.

The announcement carried national significance, raising widespread concern and uncertainty among employees, unions, contractors, and the local community.

Working With a Major Energy Provider

ENGIE demonstrated leadership by recognising its social responsibilities to employees and the Latrobe Valley community. They engaged Choice Dakin to deliver a structured, professional outplacement and career transition program designed to support employees at every stage.

Our role was to:

  • Assist the organisation in planning and communicating what the announcement meant to the workforce.
  • Assist employees in understanding their options and preparing for life beyond Hazelwood.
  • Provide clarity through consistent and transparent communication.
  • Deliver practical support to build confidence and resilience.
  • Minimise the social and economic impact of the closure on the broader community.

Planning For People

The closure of Hazelwood was immediate, with 380 employees and 120 contractors exiting in March 2017. We worked closely with ENGIE’s HR and project teams to ensure everyone affected had access to tailored support.

Key elements of our program included:

  • Structured communication strategies to ensure employees were kept informed, with consistent, transparent updates.
  • Project management principles applied to workforce transition, ensuring no critical actions or stakeholders were overlooked.
  • Stakeholder engagement plans, identifying key groups and addressing their concerns proactively.
  • Individualised outplacement support, recognising the diversity of employee needs, from skilled engineers to administrative staff.

Putting Plans Into Action

Our on-the-ground team delivered a program that balanced efficiency with empathy:

  • Career coaching and planning for employees and contractors.
  • Résumé development and interview preparation.
  • Job search skills and networking advice.
  • Emotional support to build resilience and confidence.
  • Connections to local employers, training programs, and labour market insights.

We prioritised listening to employees’ aspirations and concerns, helping them see beyond the closure toward new opportunities.

Lessons Learned

From this large-scale transition, several key insights emerged:

  • Communication is critical – Frequent, clear, and honest communication built trust, even amid uncertainty.
  • Structure supports success – Project management frameworks helped keep the process organised and manageable.
  • Know your stakeholders – Identifying and engaging key groups early prevented misunderstandings and resistance.
  • Outplacement makes a difference – Employees who felt supported during the transition achieved better outcomes and maintained goodwill towards ENGIE.

Outcomes

By October 2017:

  • 260 employees actively participated in the outplacement program.
  • 73% of participants achieved their desired transition outcomes within months of leaving.
  • The closure, while difficult, was executed with dignity and respect for the workforce and community.

Hazelwood’s experience demonstrated that even the most challenging industrial transformation can be managed effectively when people remain at the centre of the process.

About Choice Dakin

At Choice Dakin, we help organisations manage the human impact of change and assist in building human capability. We are also the Australasian partner of OI Global Partners.

From large-scale site closures to corporate restructures, we work alongside organisations like ENGIE to ensure people are supported, respected, and ready for what comes next.

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