Barratt Developments is about to make about 1,000 people redundant, taking job losses in the construction industry to nearly 2,500 in just two gloomy days.

Barratt, whose shares have plunged by 97 per cent since their peak in February 2007, summoned staff to meetings this morning where they were told that consultation over job cuts would begin. Management is looking to cut about 15 per cent of the industry's 6,700 strong work force with cuts expected in most functions.

Galliford Try, the construction group, also confirmed today that it was cutting 256 jobs in its housebuilding division in response to the weaker property market. Ballymore, the residential and commercial developer, also said it was cutting 50 jobs - more than 10 per cent of its workforce - as part of a management shake-up.

Yesterday Taylor Wimpey, the UK's largest housebuilder by volume, said it was cutting 900 jobs and closing a third of its regional offices in a bid to cut costs in the face of a 45 per cent slump in reservations of new houses and a 33 per cent fall in completions.

Other housebuilders known to be in the process of making redundancies include Bellway, which is set to cut 250 jobs, Persimmon, Crest Nicholson and Countryside Properties.

Barratt Developements has been under pressure in the face of a dramatically slowing housing market. Barratt has been trying to raise fresh capital from existing investors to strengthen its balance sheet, which has £1.7 billion of debt.

Just over a year ago Barratt shares were changing hands for nearly £11, valuing the company at £3.8 billion. It had just completed a £2.2 billion cash acquisition of Wilson Bowden at the height of the housing boom.

To reduce costs and outgoings Barratt has said that it will close two regional offices entirely at Chester and Sheffield. It also plans to merge some of its regional offices, to create four offices where there were previously eight. When the mergers are completed, the company will be left with 26 regional offices.

The job cuts will fall on building sites and in sales, administration and support as the firm shrinks the business to meet the tougher market conditions.

News of Barratt's progress on refinancing is expected next week. It is thought it is close to striking a deal with its lenders to relax banking covenants on debt and gain an extra £400 million to pay off a £600 million short-term loan used in the Wilson Bowden deal

Barratt declined to comment on the negotiations.

Yesterday Taylor Wimpey's shares almost halved after it said it had been unable to clinch a refinancing arrangement with its banks so far.

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