The consultant was originally looking to save £18m during the economy drive but that figure has been revised upwards to £21m.

The business has been reorganised into two divisions – Mouchel Infrastructure Services and Mouchel Business Services managed by ex BT man Craig Apsey.

A full financial restructuring of Mouchel’s balance sheet will also be unveiled by the end of next month but “all options being considered will result in there being only limited value for existing shareholders”.

The firm’s share price fell 35% in early trading this morning.

Chief executive Grant Rumbles said: “The Group is in a period of transition as we implement our restructuring plans to achieve the benefits of being a smaller more streamlined organisation with a lower cost base.

“Once these actions are implemented fully, the Directors believe that Mouchel will return to being a profitable and cash generative business with the balance sheet restructured to give us the correct long term funding structure.

“This will position us well to compete effectively once more in our markets, which continue to provide attractive long term outsourcing opportunities both within the UK and internationally.”