A spokesman for the firm said: ‘The current economic climate means that the volume of insolvency assignments has reduced and we see no likelihood of this increasing in the foreseeable future.  We have therefore made a business decision that reflects the market we operate in, and have regrettably entered a period of consultation with our employees in that area of the business.’

Latest statistics from the Insolvency Service show corporate and personal insolvencies declined in the third quarter of this year, with company liquidations and administrations down sharply.

There has been an 11.7% fall in company liquidations over the last three months compared with July to September 2013, bringing the number to the lowest level since the beginning of 2008.  Administrations decreased by 18.8%, and company voluntary arrangements and receiverships also fell.

Giles Frampton, president of industry body R3 said: ‘The long-term corporate insolvency trend is downwards and activity has been very quiet recently.’

The BDO spokesman said: ‘We are fully supporting the affected people and will do everything we can to minimise the impact on them.  We will continue to invest in other areas of the business to meet the changing demands of the market and ensure we continue to provide the very best service to our clients.’