The sweeping move has been forced on Carillion by Government cuts to solar power subsidies which are set to decimate turnover at the division.

A spokesperson for Carillion said: “We expect the government’s plans for much larger and earlier than expected cuts to feed-in tariffs to reduce the size of the solar PV market significantly.

“In order to react to the effects of this on our business, we have launched a statutory 90-day consultation process with our people on how we can reshape our business.”

The move comes just months after Carillion bought renewable energy specialist Eaga for £306m.

The former Eaga operation forms the bulk of the current energy services division.

The fall-out from the solar feed-in tariff cuts also continued to hit turnover at specialist contractor Breyer this week.

Breyer’s £22m solar installation job for Colchester Borough Council is being cut from December 12 when the subsidy regime changes.

The job started in July and was due to run until next March but will now be rescoped.

A Breyer spokesman said: “After December 12 we will renegotiate the contract and identify what can be done under the new scheme.”

The latest blow follows the cutting short of an £18m contract with housing group Peabody revealed in the Enquirer last week.