SOL Construction, which has a base at Acorn House in Coventry Road, was taken over by the building firm Rok last year.

But while Rok is expanding its repairs, refurbishment and response work, it will no longer build commercial properties. As a result a “small number” of redundancies are expected at the Warwick site which employs 270 people, including tradesmen, technicians, managers and administrative staff.

A Rok spokeswoman said: “We are in consultation with some staff following our acquisition of SOL last year.

“In line with the direction we announced in August the Warwick operation is changing as we recruit more technicians to provide building and maintenance services but move away from larger construction projects.

“Some organisation structures are being streamlined to fit Rok’s business model and we anticipate a small number of redundancies as a result.”

But while the staff expected to go work in administration, the wife of one employee involved in construction says her husband fears for his job.

She said: “He thinks it is happening because there is not enough business in building and construction at the moment.

“It’s been done fairly in a way because they could just let people go, but having to prove yourself and fight for your job is stressful.

“We have got responsibilities and mortgages so want to know what is going to happen. Some workers will be offered the chance to relocate to Birmingham, but not everyone will want to travel there everyday.”

SOL Construction was founded in 1967 and bought by Exeter-based Rok for £19million last May.

Maintenance of all Warwick District Council buildings from council houses to Riverside House is carried out by the firm.

The company currently employs 360 people in the West Midlands and is cutting jobs to prepare for an expected recession in UK construction industry.

Finance director Ashley Martin has said he believes it could take three or four years for the commercial property market to recover from a recession.