Almost 400 staff have been told their jobs are at risk by Horizon Nuclear Power in Gloucestershire.
The Brockworth-based company suspended its nuclear development programme, following a decision taken by its parent company Hitachi, Ltd.
As reported last week, it is developing the Wylfa Newydd nuclear plant on Anglesey in North Wales and has a second site at Oldbury on Severn in South Gloucestershire. This has now been stopped.
As a result, it has now begun a formal consultation process with its hundreds of staff.
A spokesman for Horizon Nuclear Power said: “Hitachi haven’t withdrawn entirely but we (Horizon Nuclear Power) have suspended our projects at Wylfa and Oldbury and very unfortunately this will trigger a large scale redundancy programme.
“This week we began a formal consultation process with our 380 staff and the current expectation is there only will be a small number of people left at Horizon at the end of the process.
“As with our staff, we are now in conversations with our supply chain with a view to bringing their work to an orderly end.”
It comes as Gloucestershire Live reported that Tewkesbury MP Laurence Robertson, whose constituency Brockworth falls under, was due to meet employees to pledging to do anything he could to help.
Speaking on January 17, Duncan Hawthorne, CEO of Horizon Nuclear Power, which has its headquarters on Gloucester Business Park in the City, said: “We have made very strong progress on all aspects of the project’s development, including the UK design of our tried and tested reactor, supply chain development and especially the building of a very capable organisation of talented and committed people.
“We have been in close discussions with the UK Government, in cooperation with the Government of Japan, on the financing and associated commercial arrangements for our project for some years now. I am very sorry to say that despite the best efforts of everyone involved we’ve not been able to reach an agreement to the satisfaction of all concerned.”
He said nuclear remained critical to delivering the secure, low carbon and affordable energy the UK needs.
“As shown by our completion of the Generic Design Assessment for the UK Advanced Boiling Water Reactor, I am confident that the technology can play an important role in helping tackle our energy needs and meeting our climate change targets. Wylfa Newydd on Anglesey remains the best site for nuclear development in the UK and we remain committed to keeping channels of communication open with the Government and our other key stakeholders regarding future options at both our sites.”