Jennie Daly, Taylor Wimpey’s chief executive, said that she had “pulled all other levers” before embarking on a headcount reduction.

Daly said the consultation is in the “very early stages”. The company did not say how many of its workforce of 5,000 might be affected.

As well as redundancies, it has slowed its build rates and reined in its land spending in an attempt to cut costs. At the end of 2022, the company had a total cash amount of £864 million.

Taylor Wimpey said it built 14,154 homes in 2022, just below the 14,302 completed in 2021, and that it expects its full-year operating profits to be in line with market expectations.

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Daly said: "The business performed well in 2022, as our tight operational controls and price discipline led to an improved operating margin.

"Despite the economic and political backdrop through the second half, I am pleased that we expect to report full year operating profit in line with expectations.

"As previously reported, we have acted quickly and decisively to address changing market conditions and continue our efforts to maximise efficiency."

It comes after its rivals Persimmon and Barratt Developments cautioned a slowdown in the housing market as a recession looms.

Housing sales have slumped across the board following Liz Truss and former Chancellor Kwasi Kwarteng’s mini-budget in September, which sent mortgage rates soaring.

On Thursday, Persimmon said it was experiencing “notably weaker customer demand”, particularly after the mini-budget.

On Wednesday, Barratt Developments introduced a hiring freeze.

The firm said the market had been hit by “political and economic uncertainty” and rising mortgage rates, which made homes less affordable.

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The company told shareholders on Wednesday that it has “significantly” cut back on buying land.

According to the latest report on jobs by KPMG and the Recruitment and Employment Confederation, the construction sector saw the quickest drop in vacancies in December.