The move to streamline the construction business follows talks with Wates about a potential offer for the division, but these eventually ended without a deal.
A Shepherd spokesperson, told the Enquirer: “Following a review of the Shepherd Construction business, along with its support service teams, a consultation process with employees has now concluded.
“As a result of this process we can confirm that we have made 37 compulsory redundancies, with an additional 18 employees taking voluntary redundancy.
“We are doing everything possible to prioritise the welfare of staff affected, and ensure our effectiveness as a leading built environment specialist.”
At the beginning of the consultation process when rumours were circulating that up to 180 jobs could be at risk, Mark Perkins, Shepherd’s CEO said: “We must ensure that Shepherd Construction operates as efficiently as possible to meet the demands of today’s market and safeguard the long-term future of the company and its workforce.
The construction arm has struggled recently and ran up an £8.2m loss last year on turnover down a third to £240m.
Shepherd Engineering Services did better making a £5.3m profit from turnover up 8% at £208m.
These two main Shepherd contracting arms employed nearly 1,400 staff.
Last week more than 60 Shepherd Homes staff joined Galliford Try’s Linden Homes business when it bought the land and assets of the house building business. The sell-off comprises six current sites and five sites in planning, totalling a land bank of 515 plots.