A utilities company which employs 200 people in Cardiff is relocating part of its business to Suffolk.
Inexus Services Limited, which only moved into Cardiff’s new Capital Quarter in January, has warned of job losses.
The company installs gas, power and water infrastructure at new housing developments across the UK.
The decision has been blamed on a “restructuring” following a merger with Bury St Edmunds-based GTC.
It is proposed that between March and July next year all of Inexus’ gas and electric connection and asset management activity, which is managed in Cardiff, will merge with GTC.
A spokesman said: “The proposals could result in job losses in the Cardiff region, however up to 60 new vacancies could be created elsewhere within the company”.
The Metropolitan Infrastructure business, which provides low-carbon utilities for housing developments, will continue to operate from Cardiff.
Staff have been told and consultations with representatives will start shortly.