The planned redundancies, which account for about 6% of the February workforce of 35,100 staff, were about maintaining margin neutrality, the broker said.

“Hence [the] benefits are likely to be offset by revenue reduction,” Macquarie.

“We forecast an 11% reduction in calendar year 2015 revenues for Worley on a constant currency basis.”

Based on Worley’s 1700 job cuts last year which were part of a $35 million restructuring cost, Macquarie is estimating the cuts this time round to cost around $45 million pre-tax to implement.

While the oil industry downturn has made Worley downgrade its second half earnings outlook, Macquarie still has a neutral rating on the stock including a 12-month price target of $10.65 when the shares were $10.35.

“On the positive side Worley’s balance sheet is in reasonable shape (1H15 gearing 27% in line with target range or 41% on a lease adjusted basis) and the business is cash generative in a downturn,” the broker said.

In terms of the takeover speculation that helped pushed Worley shares above $11.80 as of early last week, Macquarie restated that it still saw the company as more likely to be an acquirer of assets “rather than an acquiree”.