Capricorn Energy is set to make around 120 of its UK workforce redundant.
In a stock exchange update, the Edinburgh-headquartered oil and gas producer stated that it is consulting with 238 global employees and expects to have fewer than 40 in the UK.
This is part of a strategic shift, focusing on its operations in Egypt.
The board is due to deliver an update on 27 April, following a shareholder revolt over its now-withdrawn plans to merge with NewMed Energy.
Objections to the deal led to a boardroom clear-out, including the departure of the chair and chief executive. The new board mostly comprises members proposed by activist investor Palliser Capital.
"In the earliest days of the strategic review, the board concluded Capricorn's near-term strategic focus should be primarily on Egypt, and to farm down, monetise or exit exploration concessions outside Egypt," read the statement.
"As a result, Capricorn will need a substantially reduced headcount in the UK and will therefore shortly enter a redundancy consultation process which is expected to result in an organisation of less than 40 people in the UK."
The company anticipates the majority of these changes will be made in the coming two months.
As a result of the reduced headcount, Capricorn will also be reviewing its UK office space requirements.
A separate announcement noted that Capricorn has appointed Merrill Lynch International as its corporate broker with immediate effect.
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