The Enquirer understands that letters were sent out last week to workers whose jobs  are now at risk.

One source said: “This is a directive from head office and business units across the county have been tasked with trimming down staff numbers.”

“We’ve been told it is due to worse than anticipated trading this year and problem energy from waste contracts.”

It is understood the redundancies will mainly be focused on management and back office roles.

An Interserve spokesperson said: “Since October this year, we have been reviewing our business strategy and performance to create a stronger platform for Interserve’s future profitable growth.

“In the short term, we are reducing the overall costs within the business, and this will unfortunately have a direct impact on some of our people with possible job losses.”

Interserve has experience a torrid time since posting a loss of £94m last year.

The group delivered its latest profit warning last month as it battles not to breach bank loan covenants.

Shares in the firm closed on Friday at 81p valuing the business at £118m.