Hydro Tasmania’s consulting business Entura is to axe up to 40 jobs.

The state-owned company employs about 280 staff in offices in Australia, Asia and Africa, who consult on renewable energy projects.

Entura posted a modest profit last financial year and has blamed the 30 to 40 job cuts on a severe contraction in Australia’s engineering consulting market.

Hydro Tasmania posted a before-tax loss of almost $250 million last financial year, a week after promoting its biggest ever pre-tax operating profit.