More than a quarter of the workforce at P&O Ferries is being cut to enable the company to survive the Covid-19 pandemic.
As many as 1,100 jobs will be lost in a shake-up of the business against a backdrop of a collapse in passenger carryings.
The ferry company, which operates cross Channel routes from Dover in addition to services on the North and Irish seas, is reported to have been losing £250,000 a day since passenger traffic was halted on March 23.
P&O Ferries is making 614 staff on the Dover to Calais service redundant, with a further 122 job losses on links between Hull and Zeebrugge and Rotterdam. The remainder are officers and shore-side staff on the same routes.
A spokesperson said: “Since the beginning of the crisis, P&O Ferries has been working with its stakeholders to address the impact of the loss of the passenger business.
“It is now clear that right-sizing the business is necessary to create a viable and sustainable P&O Ferries to get through Covid-19.
“Regrettably, therefore, due to the reduced number of vessels operating and the downturn in business, we are beginning consultation proceedings with a proposal to make around 1,100 of our colleagues redundant.”
Owned by Dubai-based ports and logistics organisation DP World, the ferry company had a £150 million government bailout request rejected last month after it emerged that the parent company was set to pay a £270 million dividend to investors.
Dover and Deal MP Natalie Elphicke urged the parent company to “stump up or sell to better owners”.
She told the BBC: “Let’s remember that P&O, which is owned by the Sovereign State of Dubai, has received millions of pounds of financial support from our government in recent weeks.
“There can be no doubt that Dubai has more than enough money to keep P&O going in full.
“It cannot be right for them to have taken millions of pounds from the hard-working British taxpayer in furlough and freight support payments and then decide to pull the rug.”