Engineering construction giant WorleyParsons is slashing more than 2,000 jobs globally, with some Australian positions to go as oil prices plummet.
But most of the retrenchments are occurring in Canada and the US, with the oil and gas sector focused company forecasting a 50 per cent drop in earnings for the second half of 2014/15, compared with the first half.
WorleyParsons has now axed 6,000 jobs since 2013.
Chief executive Andrew Wood would not give a breakdown of where the latest job losses would occur, but said most would be in North America with office positions also at risk across the world.
"It's always difficult when you're in a declining market and having to take the actions that we are," he told reporters on Monday.
"Job losses will be occurring in Australia and around the other regions."
WorleyParsons said the redundancies, the early termination of office leases and other costs associated with scaling back existing projects would cost $125 million before tax.
Mr Wood said the job cuts and downsizing would save $75 million and $100 million from 2015/16.
His company has blamed falling commodity prices for its hit to earnings and deterioration in its workload since February.
Margins have also been hit in North America, where gas developments in Canada and the US were last year viewed as "attractive" by the CEO.
"This deterioration in workload was caused by a sustained weakness in the key commodity prices of our customers," Mr Wood said.
WorleyParsons had 35,100 employees in 46 countries before the latest job cuts.
It had axed 4,000 jobs in 2012/13 and 2013/14.
Deutsche research analyst Craig Wong-Pan said WorleyParson's full year net profit after tax is now likely to plunge to $156 million, which would mark a 41 per cent fall from a net profit of $263 million in 2013/14.
"Those declining oil prices were going to affect the company's earnings over the next 12 months," he said.
But Mr Wood said WorleyParsons was open to acquisitions and was not subject to a takeover offer.
"We are continuing to evaluate acquisition opportunities," he said.
"The balance sheet remains strong."
WorleyParsons shares dived $1.10, or 9.6 per cent, to close at $10.35.
In the second half of April, its share price rose by 29 per cent to a five-month high of $11.91 in just two weeks.
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