Mining contractor Macmahon is cutting around 40 jobs in order to deal with the slump in the sector.
The West Australian reports the cuts will come from the company’s head office in Perth as well as its workshop at Perth airport.
"In order to remain competitive in the current market, Macmahon is continually reviewing its operations to ensure it is operating as efficiently as possible," a spokesman said.
Last month the company said it had turned around a loss of $29.4m in 2013 to a profit of just over $30m in 2014.
However CEO Ross Caroll warned that the market had deteriorated in the second half of the financial year.
“Current market sentiment, particularly around the key commodities of iron ore, coal, copper and gold, is clearly subdued and until pricing improves and the market regains some confidence in the resources outlook, mining services companies such as Macmahon will face the challenge of navigating through this subdued economic cycle,” Caroll said.
“When our customers are battling, it is a sure sign that pressure will be placed on the service providers to the mining industry.”
To remain competitive, the company said it was continually reviewing its cost structure and restricting capital spending.