Managing director Chris Birch said the business was in consultation over making fewer than ten staff redundant among its 100-strong workforce.
The consultation also includes the prospect of salary cuts of 10% across all departments and a possible 20% for directors.
Birch said public spending cuts have led to national builders going after smaller, local contracts.
He told the York Press: “I’m very sorry that we’re having to go through this process with our employees. It’s difficult for the whole construction industry.
“Everybody is looking for ways of operating as efficiently as possible. We need to win more work and be very competitive to win the work.
“We’re competing with national contractors when they weren’t really tackling smaller work in the past. They’re coming down in size and competing with local contractors for jobs under £1 million.
“The private sector which the Government is hoping will provide the job hasn’t picked up yet so we have a reduced public sector and private sector. And it has not shown any signs of picking up yet.
“It’s very disappointing as a family firm which has provided employment in the area for 130 years and we want to continue to do so. We have got to safeguard the long-term future of the jobs we are able to provide.”