SHEPHERD GROUP has confirmed it has cut 55 jobs at the end of a consultation process into a restructure of its construction division.

The figure is lower than originally expected, after suggestions that up to 180 roles were under threat.

Shepherd has led construction of the Hitachi Rail Europe train factory, in Newton Aycliffe, County Durham, which is due to open later this year.

The York-based firm, which has offices in Darlington and Newcastle, said most of the job losses are in back-office roles, and the cuts include 37 compulsory redundancies in addition to 18 volunteers.

A Shepherd spokesperson said: "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.”

The latest accounts for Shepherd Construction showed it ran up an £8.2m loss last year as turnover fell by a third to £240m. Its Shepherd Engineering Services business performed better, making a £5.3m profit as turnover rose 8 per cent to £208m.