Yorkshire-based contractor Shepherd Construction has started a redundancy process with its 800 staff.

The job cuts, to be made across the contractors head office and regional operating divisions, comes in response to a lower projected turnover of £260m for 2009/2010 compared to a previous turnover in excess of £300m.

The restructuring move has been prompted by the downturn in the market that has been exacerbated by the stalled Learning and Skills Council’s building programme, on which Shepherd Construction had been appointed preferred contractor across a number of locations.