UK car dealership brands Evans Halshaw and Stratstone have announced plans to cut 1,800 jobs across the UK.
The owner of the two brands, Pendragon, has been devastated by the coronavirus pandemic due to the collapse in demand for new vehicles.
As a result, up to 15 sites are set to close.
Those dealerships made a collective loss of £2m last year and the 400 people currently employed within them are due to be made redundant. The remaining job losses are a part of cost-cutting measures.
Pendragon expects the move to cost the firm £7.7m, but that it would result in £35m in savings in the long run.
Chief Executive Bill Berman said: “These have been difficult decisions for the board to make and our priority now is to manage the transition to our new operating model. The COVID-19 pandemic is a uniquely challenging situation and we want to protect as many jobs as we can sustainably and the proposed redundancies are, of course, extremely regrettable.
“The actions that we are undertaking are for the long-term health and success of the group and ensure that we emerge from the pandemic as a more competitive and stronger business with the ability to thrive in the future.”