PHX Energy layoffs the latest to hit Alberta's oil industry

Calgary-based PHX Energy Services says it's releasing nearly half of its workforce, amounting to more than 500 employees.

Most of them live in Alberta.

"PHX Energy believes its actions will preserve the corporation's balance sheet and will enable it to gain market share in this difficult environment," the drilling company saidin a release.

• Calgary's 'ghost towers' and Alberta energy layoffs
• Energy industry layoffs in Calgary a boon for HR companies
• Alberta finance ministerpromises job creation plan as oil and gas layoffs continue

PHX had already cut salaries up to 20 per centearlier this year in the hopes of creating a buffer from the effects of low oil prices.

"Due to the current market challenges and uncertainty with respect to future oil commodity prices and drilling activity, PHX Energy has significantly reduced its cost structure to align with anticipated lower activity levels and reduced day rates," said the company's statement.

The layoffs are the latest announcement of job losses in Alberta's energy industry.

Other recent layoff announcements

Penn West announced last week that it let go400 full-time employees and contractors most of them working at company headquarters in Calgary

ConocoPhillips Canada also reduced its workforce by about 15 per cent, or400 employeesand 100 contractors.

Nexen announced layoffs earlier this year, as didTalisman Energy.

Tervita a company that specializes in environmental waste management cut its corporate headcount by 15 per cent because of the "prolonged downturn in the energy markets."

Other oil companies are also reducing staff wages to avoid layoffs.Canadian Natural Resources Limited announced on Thursday it would cut wages byup to 10 per cent.

The company reporteda $405-million net loss in the second quarter of this year, sayingit would have been profitable if not for an increase in Alberta's corporate tax rateput in place by the governing NDP.