A review of the business was launched last month following its latest £40m profit warning.

In a trading statement to the Stock Exchange this morning Galliford Try said: “The group has undertaken a review of its Construction business with plans being implemented to simplify the business and management structure and to refocus on key strengths in markets and sectors with long-term growth and profitability potential. 

“The business will concentrate on its core strengths in Building, Water and Highways (having already ceased bidding on fixed-price major projects in 2016) resulting in a reduction of up to 350 personnel across the UK. 

“The restructured business’s target annual revenue will reduce to approximately £1.3bn generating annualised cost savings of up to £15m from 2021, accelerating progress towards our target operating margins of 2% by 2021.”

Chief Executive Graham Prothero said:  “We have made some difficult decisions in response to the challenges faced by the Group’s Construction business.

“The associated operational changes are being implemented across the business.

“We are confident that the decision to refocus our construction activities will deliver a more stable business for the future and support improved margins.

“Our balance sheet remains strong, with guidance for average net debt for the full year unchanged.”