Half year results to June 31 show the firm now employs 8,500 people compared to 8,900 at the end of 2010.

Redundancies and restructuring have cost the firm £2m this year and most of the job cuts have been concentrated in the UK.

Global turnover was slightly up at £362.2m from £354.4m last time while pre-tax profit fell to £14m from £17m.

The UK transport business continued to be hit hard by a fall in public spending as revenue for the six months dropped to £38.1m from £44.8m during the same period last year and the profit margin went from 4.7% to zero.

The firm said: “The UK roads sector accounts for a significant proportion of our transportation business and government cuts in this sector has had a major impact on the performance of our business.

“We have been selected for Lots 1 & 2 of the Highways Agency preferred supplier framework, although budget constraints have seen minimal workflow to date.”

WSP is now expanding into the rail market and is lead designer on the Paddington Crossrail scheme working with Skanska and Costain.

Revenues were also up in the UK property division to £42.4m from £40.1m as margins also improved.

The results said: “The outlook for our UK public sector work, particularly Roads and Education, is uncertain and accordingly we believe we are now taking the appropriate further restructuring actions whilst we continue to diversify our activities with increasing success into the regulated sectors of Rail and Water.”