The firm said it was still finalising the scale of the next round of job cuts but expected streamlining to result in a £40m one-off cost.

The announcement came as Carillion revealed it has just signed a £100m deal with West Sussex County Council to deliver an energy saving programme.

The 10-year contract aims to deliver energy savings of £30m per annum for Sussex residents.

Carillion Energy Services became the biggest firm in the market in February 2011 when it paid £306m for renewable energy specialist Eaga.

Since then it has carried out several rounds of job cuts. The largest saw 1,500 jobs axed from the 4,500-strong workforce when the photovoltaic market was rocked by changes to Government subsidy.

The latest wave of cuts has been prompted by the failure of  Green Deal to live up to expectations.

A company statement said: “In our half-year results announcement, we noted the slow start to the whole of the Green Deal market, which, together with the delayed start to the Energy Company Obligation (ECO) market, is affecting our revenue expectations from energy services.

“The development of the Green Deal market continues to be slow and ECO may now be subject to further delays.

“Consequently, we will restructure this area of our business during the remainder of 2013 to ensure that it is aligned in size to the markets in which it operates.

“We are still assessing the extent of the restructuring required, while ensuring we maintain an effective offering and service delivery model.  Currently, we expect total non-recurring operating charges of some £40 million in 2013.”