The number of workers on a new nuclear power site is being reduced as negotiations continue with the Government on a contract for electricity produced from the site.
French giant EDF Energy said it was "refocusing" activities at the Hinkley Point site in Somerset, where around 800 people are currently employed.
No figure for the job cuts was released, but sources said there would be a "significant" reduction.
A company statement said: "As part of good project management, and to control costs, EDF Energy has taken steps to refocus its activities at its Hinkley Point C project. This reflects its priorities ahead of securing the financing necessary for the project.
"In this context much activity including further detailed pre-construction engineering work will continue ahead of the later construction phase. This means there will be a reduction in the number of people working on the project for the time being.
"Negotiations with the UK Government to agree a contract for the electricity from Hinkley Point C are making progress."
The firm has been negotiating with ministers over what it can charge for the electricity Hinkley will generate.