The main job cuts came from the highways division where delays and cancellations of schemes took their toll.

Atkins chief executive Keith Clarke said: “We continue to be impressed with the professionalism, talent and commitment of our staff who are delivering very effective solutions to our clients’ complex infrastructure challenges.

“This is particularly impressive when budgets are under pressure and we are making staff reductions in certain sectors across our business.”

He added: “Our focus remains on managing headcount to meet the anticipated market demand for our services, driving efficiency in our operations through cost reductions, and supplementing skills with niche acquisitions where appropriate.”

Over the year to March, more competitive conditions impacted on UK operations with operating profits down a fifth to £61.4m on revenue down 6% at £926m.

Across the group, pretax profits slipped to £91m from £96m last time with revenue up 12% to £1.56bn.

Work in hand at the start of the new financial year represented 55% of budgeted revenue for the full year. At the same stage in 2010, the figure was 54%.

The company said the outlook for the current year remains unchanged and in line with market expectations.