WorleyParsons, Australia’s largest oil services business, yesterday announced it was cutting 2,000 jobs and reducing work due to falling commodity prices.
The firm, which has operations throughout the UK and the rest of Europe, forecast second-half earnings will fall about 50 per cent from the first half of the year.
The Sydney-based company said that the redundancies, the early cancellations of office leases and other costs associated with scaling back projects would cost $125m before tax.
“The benefits of this will flow through to the 2016 financial year, and are estimated to deliver future annualised savings of AU$75-100m (£39-52m),” the company stated.
WorleyParsons, which is focused on oil and gas sector construction projects, has blamed falling commodity prices for its drop in earnings and deterioration of its workload since February.
Margins have also been hit in North America, where gas developments in Canada and the US were viewed as attractive last year.
“WorleyParsons is taking further action to adjust its business to market conditions,” the company said.
WorleyParsons shares fell around 10 per cent in Australia on the news.