Countryside Properties is expected to make about 80 of its 200 staff redundant, due to the downtown in the housing market.
A consultation period has been started by the Warrington-based developer, as it begins its process of reducing the size of the company.
In a statement released by the firm, it said: "It is with regret that we confirm that Countryside Properties (Northern) is having to consider further redundancies and is currently consulting with staff affected. The proposals could affect around 40% of the 200 staff working within the regional company. These redundancies follow on from the initial redundancies made in the spring and reflect the need to reduce the size of the company following the continued worsening of market conditions. The true extent of the significant downturn in the housing market in the region has now led to a slowing down of our development programme and a continuing review of the company's business.
"The decision to enter into consultation was taken with great sadness given the company's proven commitment to its staff. Countryside Properties prides itself on its retention of staff across the Group and the development of long-term careers for its people. The current exceptional market conditions are however creating the most challenging operating environment for many years and it would be irresponsible not to react by reducing the cost base of the company."