WorleyParsons is expected to axe more jobs on top of the 500 it cut last year in a cost-slashing restructure.
The costs of the restructure will eat into this year’s profit result by $35 million.
The company’s culture also had to improve as there had been a decline away from customer care and shareholder outcomes, chief executive Andrew Wood said.
The global and engineering group has been under market pressure since last November’s abrupt profit warning, when 2014 guidance was cut from a forecast increase of more than $322 million to between $260 million and $300 million.
The share price sunk nearly 30 per cent to $15.72 in less than a week and a shareholder class action was launched.
“We believe we have a unique culture that has helped grow this from a very, very small business to a large one in a relatively short period of time,” Mr Wood told reporters on Wednesday.
“We believe that in the last few years there has not been as intense a focus as we normally expect from our business so we are working through what we need to do to get that really high level of customer care back into the culture.”
No jobs figure was given, but corporate rather than operational roles will go and Mr Wood said a more specific number would be given when it reports its results in August.
The market liked Wednesday’s news, sending the stock up $1.07, or 6.9 per cent, to $16.55.
The restructure involves a splitting into three sections: its biggest earner Services, Major Projects and Improve, where previously it had been along geographic and sector lines.
Mr Wood said that would simplify the business, reduce overhead costs and improve margins from next financial year.
The success of the restructure would be judged by whether or not margins improved, said Morningstar analyst Peter Rae.
WorleyParsons has been hurt by a a significant downturn in mining globally and oil sands projects in Canada.
“Their key business is oil and gas … they are leveraged to medium term growth there and in our view we are beginning to see good growth in capital spending in areas where they have expertise: unconventional oil and gas and offshore deepwater oil,” Mr Rae said.