Layoffs have been announced at the Evraz steel plant in Regina.
The company says the temporary layoff of 40 to 50 employees in its steelmaking operations begins May 17.
In a statement, the company said the layoffs are necessary "to align crew levels with production activity, which is currently lower due to reduced steel demand associated with substantially lower oil drilling activity."
Evraz makes pipe for the oil and gas industry.
The company, one of Regina's largest private sector employers, said it hopes to bring the employees back to work as soon as possible, although no specific date was provided.
The laid-off employees will also be considered for open positions across the Regina operations, the company said.
Evraz says it is still going forward with a $200 million expansion to its Regina operation.