Kier is planning to cut 50 jobs at the repairs and maintenance division it runs in partnership with Sheffield City Council.
A spokesman told CN that letters have gone out to all 985 Kier Sheffield employees.
She said: “As a result of the current economic downturn, Kier Sheffield is in consultation with trade union representatives regarding a reduction in staff numbers by approximately 50.
“We will do everything we can to help those affected secure work elsewhere in the business wherever possible.
“We do not expect this to impact on our service delivery.”
Kier Sheffield is a limited liability partnership formed in 2003 between Kier Group and Sheffield council. It was created to provide a repairs and maintenance service for the city’s social housing, public and private buildings. It covers almost 43,000 houses and other public buildings such as libraries, schools and social services establishments.
In a trading statement last week, Kier said its services division is sustaining a 4.5 per cent operating margin.