。
The woodcutter cuts down the tree with an axe.
Literal
Wood-cutter [topic-は] tree [object-を] axe [with-で] cut-down.
木こり ('woodcutter, lumberjack') is a native Japanese compound of 木 ('wood') + こる (an old verb meaning 'to cut wood,' surviving only in this compound). 切り倒す is a compound verb (切る 'cut' + 倒す 'knock down'), capturing the two-step action of felling a tree. で marks the axe as the instrument.