The Kirkham business near Preston is the biggest of Imtech’s three regional engineering services centres, and employed around 100 staff.

But in recent months the northern region, which turns over more than £50m, has been hit by delays on several large contracts.

The office based staff cuts are understood to have fallen mainly on managerial positions.

Engineering services is a key part of the 2,100 staff strong business, which as well as mechanical and electrical engineering services, offers management of facilities, and the integration of digital control solutions.

Just three months ago a subsidiary of French power giant EDF bought the £400m turnover Imtech UK and Ireland businesses.

The French energy company aims to combine operations with its Dalkia business to offer innovative services for industrial and commercial facilities from initial design and build, operation and maintenance through to control of energy.

A spokesman for Imtech said: “Unfortunately 16 people are affected from the Engineering Services head office which is staffed by around 100 people.

“It’s a response to a few delays on contracts starting and projects being pushed out, sadly the sort of day-to-day management that has to be undertaken.”