Oil and gas sector engineering giant WorleyParson's share price has tumbled after it blamed falling commodity prices for the retrenchment of 2,000 workers.
WorleyParsons says earnings during the second half of 2014/15 are likely to be about 50 per cent less than the first half of this financial year, with oil prices sliding since late last year.
It says the redundancies, the early ceasing of office leases and other costs associated with scaling back projects would cost $125 million before tax.
The company, which is focused on oil and gas sector construction projects, 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.
"WorleyParsons is taking further action to adjust its business to market conditions," the company said.
Deutsche research analyst Craig WongPan 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.
"This is really not a surprise for us.
"They did single out North America - you can draw the conclusion that's probably the majority of where they felt the deterioration in workload."
Worley Parsons share price fell $1.16, or 10.1 per cent, to $10.29 by 1119 AEST.
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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