Accounts published by the AJ100 firm last week show it employed an average of 339 architects in the 12 months to last September – down from 460 in the prior year. Including management and administrative staff, its overall staff fell by 23 per cent from 598 to 463.

This came as Grimshaw posted a 29 per cent drop in revenue to £69.6 million in the latest period, while profit before tax and remuneration almost halved to £3.9 million.

The practice blamed the fall in income on ‘challenging economic conditions’ causing ‘suspension of certain major projects’ and said it had ‘reacted by significantly downsizing’.

Grimshaw said in March 2023 that it was starting a redundancy consultation after a pause was announced on its project to design an HS2 terminal for Euston station in London. This was six months before the practice’s latest financial year began (September 203 to September 2024) so it is unclear what impact it had on the drop in staff numbers in the recent accounts.

In October 2023, the HS2 terminal was slashed from ten to six platforms following a government rethink aimed at ‘radically’ reducing costs.

New designs for the terminal have yet to emerge, and Grimshaw did not respond to a request to clarify the situation or explain what impact the project had on headcount or financial results.

In a statement, the practice said its lower turnover for the latest year was ‘largely attributed to the lower sub-consultant fees going through the business’.

It added: ‘Trading conditions in some of the global markets the practice operates in, particularly in the Middle East and Australia, have also had an impact, with key projects facing repeated delays, and the natural life cycle of large infrastructure-led projects taking effect.’

Grimshaw’s UK income dropped by 18 per cent to £17.2 million in the year to last September while income from the rest of the world nosedived by more than 70 per cent to £12.8 million.

Meanwhile, its US revenue grew by 47 per cent to £22.9 million. The US is now by far the practice’s biggest market.

Grimshaw is working on several major schemes in the US, including the Santa Monica College Art Complex in California; the University of Maine Green Engineering and Materials Factory; and an expansion of New York's Penn Station.

European work rose to £4.9 million while Australian turnover dropped to just under £12 million.

In a statement within the latest accounts, the practice said: ‘Group revenue suffered from the challenging economic conditions and particularly the restrictions on government expenditure on publicly funded infrastructure projects, as well as lack of confidence in parts of the private market.

‘The group has reacted by significantly downsizing’

‘This has led to suspension of certain major projects during the year. The group has reacted by significantly downsizing but the full benefit of cost reductions did not impact the financial year.’

It added: ‘Members believe the business outlook is improving and the group is now more efficient and resilient, and well placed to improve its operating performance.’

Grimshaw chief financial officer Neil Boyde conceded that the latest results were ‘disappointing’ but said they ‘reflect uncertainty in the market and on public spending’.

He added: ‘Operating an agile business, we can react appropriately to remain resilient and secure longer-term term better outcomes.

‘Tracking and responding to market strengths, we have particularly seen increased opportunities in the aviation and infrastructure and industrial sectors, and the practice is already trading better in the current year.’