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Image courtesy of Saipem.

Italian services firm Saipem said Tuesday it will cut 8,800 jobs during the next two years after booking about $1 billion in write downs in the second quarter and slashing its annual guidance.

According to Reuters, the company expects to book a net loss of about $883 million, or about 800 million euros, for 2015 and report an operating loss of about $496 million for the year.

Saipem had previously expected to earn a net profit between $220 million and $363 million for 2015 with an operating profit between $551 million and $771 million.

The company said it will cut about 8,800 jobs throughout its global operations from 2015 to 2017 as part of a restructuring plan.

Saipem hopes the plan will generate cumulative savings of $1.43 billion during those two years.

Th company currently employes about 50,000 people.

“I don’t know whether this is sufficient or not, time will tell,” Saipem CEO Stefano Cao told analysts.

The restructuring plan is also expected to include vessel scraps and downsizing some construction yards but not asset sales, Reuters added.

Saipem sunk to an adjusted net profit loss of $780.82 million in the second quarter on a net loss of $1.013 billion.

Adjusted EBIT, including the impact of $790 million in write downs of net current assets, sunk to a loss of $637.65 million.

The company booked $1.024 billion in write downs of net current and capital assets for the quarter.

“Results for the second quarter of 2015 reflect a market that has greatly deteriorated. The further steep fall in the oil price has resulted in a major disruption, which is not likely to be reversed in the short-to-medium term and has resulted in Clients taking an increasingly rigid approach in the operational and commercial management of contracts,” Cao said.

Italy’s Eni suspended its plan to sell part of its 43 percent stake in Saipem in December, citing “volatile” market conditions.