P&O Ferries has announced plans to lay off 1,100 people.
The ferry operator, based in Dover, Kent, said the reduction in the number of vessels and the slowdown in business had forced his decision to lay off staff.
A spokesperson for the firm said “the right size” of the business was a necessary step in creating a viable and sustainable P&O Ferries.
The owners of P&O Ferries previously said the company needed £ 257 million to avoid the collapse.
Natalie Elphicke, MP for Dover and Deal, said the news was “disappointing” and urged P&O owners to “make room or sell to better owners”.
She said: “Let us remember that P&O, which belongs to the sovereign state of Dubai, has received millions of pounds of financial support from our government in the past few weeks. There is no doubt that Dubai has more than enough money to keep P&O running. in full.
“It cannot be fair to them to have taken millions of pounds from the hardworking British taxpayer in vacation and freight support payments and then decided to pull the rug. “
In April, Sultan Ahmed bin Sulayem told the BBC that the company had requested £ 150 million from the British government.
P&O Ferries is currently in the process of laying off 614 people on the Dover-Calais line, with 122 additional job cuts on the lines between Hull and Zeebrugge and Rotterdam. The rest are officers and personnel ashore on the same routes.
Mick Cash, secretary general of the RMT union, said he was “quite ashamed” P&O was kept afloat by the taxpayer.
He said: “This is an attack on British sailors and crew, and the biggest fear is that these jobs will never come back to Dover or Hull.
“But you can guarantee that P&O ferries will continue to operate passenger ferry services from these ports to protect their owner’s profits at the expense of the country.” “
P&O said a consultation period is underway.
He said: “Since the start of the crisis, P&O Ferries has been working with its stakeholders to cope with the impact of the loss of passenger activity.
“It is now clear that the right size of business is necessary to create a viable and sustainable P&O Ferries to go through Covid-19. “