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PHX Energy Services said Thursday that it will lay off nearly 50 percent of its workforce.

The Alberta-based company will reduce its headcount by more than 500 positions, citing “current market challenges and uncertainty with respect to future oil commodity prices and drilling activity.”

Most of the laid off employees live in Alberta.

PHX also reduced salaries by between 5 to 20 percent throughout the company earlier this year.

“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 company said.

The company’s board also agreed to reduce PHX’s monthly dividend from $0.0175 per share to $0.0033 per share effective for the September dividend payable on October 15, 2015.

After September’s dividend, the company will pay a quarterly dividend of $0.01 per share effective for the fourth quarter of 2015 and payable January 15, 2016.

The company added that it has settled three pending wage and hour lawsuits in Houston against its wholly-owned subsidiary Phoenix Technology Services USA for $5 million.

The agreement must still receive court approval.