VKG said it plans to reduce its headcount by 500 members of staff.
The Estonian shale company said the move was as a result of the low oil price.
According to reports in the region, the country may ask the European Union aid in the midst of job cuts.
The move by the country’s largest private oil producer accounts for more than a fifth of its staff.
Meanwhile hundreds of jobs are said to be at risk at AS Eesti Energia.
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