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The mortgage packager and network, which is part of Skipton Group, said that 40 staff have been placed into a 30-day consultation period concluding in mid-May.

It expects the process to result in around 29 redundancies, as a new broker services team of around 10 staff will be created, safeguarding some of the jobs.

The employees affected are mainly from the packaging division, but some are also from sales and marketing.

Pink said it is investing in new technology and working with its sister company in the Skipton Group, credit referencing agency Call Credit, to create new client risk profiling system for brokers.

The firm hopes to have the system in place by the end of this year or early next year.

Barry Meeks, chief executive of Pink Group, said: "Lenders are keen to get closer to majority distributors electronically and create more seamless links between themselves and the brokers they work with.

"It means there will be less people in the middle touching paper, as the processes become more automated but packaging is not dead it is just changing and becoming more and more electronic.

"We’ve clearly suffered a downturn in business because of what has been happening in the market place, so we’ve had to take a view on that as well.

"This is not a cut for cuts sake, we are saying we want to do things differently and we are investing in technology so we are shaping how we want the business to look over the next few years."