Dawson Enterprises said it will slash 10,200 jobs at its operations and headquarters in Quebec.
The move comes after the company said it would not be able to meet its targets for spending and revenue in 2017.
Dawson has been hit hard by a downturn in the Canadian dollar and a decline in the value of its oil and gas assets.
The company said its sales have been “taken by surprise” by the downturn.
It has cut about 5,500 jobs since 2014, and it will continue to cut by 20 per cent over the next three years.
Dawson said in a statement on Tuesday that it has made the decision because of “the need to continue to operate as a company that is focused on growing and expanding.”
Dawson said it has reduced costs in the last two years, while it has expanded its research and development activities and the creation of a new research facility in Quebec City.
It also announced a $4.2-billion capital investment plan that will create 1,600 new jobs and support another 5,400 in the next 12 months.
“It’s a tough business and it’s very difficult to run when you’re dealing with so many difficult conditions,” said Dawson Chief Executive Officer Jean-Claude Croteau.
Dawson’s share price fell 2.9 per cent to $11.80 at 8:19 a.m. in Toronto.