The Eastern and East Anglia divisions are being merged as are operations in the Midlands, South Wales and the South of England.
The move follows a disappointing set of half-year results which saw operating profits dip to £7.5m for the six months to June 30 2012 from £8.3m last time.
Lovell insiders are blaming some of the problems on parent company Morgan Sindall’s acquisition of Connaught Partnerships social housing maintenance operations from the administrators for £28m in September 2010.
One source said: “These contracts just haven’t performed and are acting as a brake on the business.”
Lovell managing director Stewart Davenport told the Enquirer: “We regularly review our business operations to ensure that we remain well-positioned and able to deliver a cost-effective, efficient service to clients in a market which continues to be challenging.
“As part of this, we have merged our Eastern and East Anglia regions to create an expanded Eastern region.
“The two regions which previously covered the Midlands, South Wales and the South of England have also been merged into one.
“Regretfully, these changes will affect some senior staff with three people leaving the business as a result.
“The changes ensure that we continue to be able to offer clients a full range of services – design and build, refurbishment, maintenance and repairs – and secure the long-term framework agreements and larger regeneration projects which are the focus for our business moving forward.”