P&O Ferries have sacked 800 workers after suffering a £100m loss year on year.
The operator confirmed the huge jobs cut on Thursday afternoon.
It comes after all sailings were cancelled this morning as staff prepared for a 'company announcement'.
We told how a number of motorists were turned away from P&O's major Scottish port in Cairnryan, Dumfries and Galloway.
Company chiefs said the operator is 'not a viable business in its current state' and 'swift changes' had to be made.
A P&O Ferries spokesman told the Record: “P&O Ferries plays a critical role in keeping trade flowing, supply chains moving, and connecting families and friends across the North and Irish seas and the English Channel.
"We have been at the heart of this service for years and we are committed to serving these vital routes.
"However, in its current state, P&O Ferries is not a viable business.
"We have made a £100m loss year on year, which has been covered by our parent DP World.
"This is not sustainable."
He added: "Our survival is dependent on making swift and significant changes now.
"Without these changes there is no future for P&O Ferries.
"These circumstances have resulted in a very difficult but necessary decision, which was only taken after seriously considering all the available options.
"As part of the process we are starting today, we are providing 800 seafarers with immediate severance notices and will be compensating them for this lack of advance notice with enhanced compensation packages.
"In making this tough decision, we are securing the future viability of our business which employs an additional 2,200 people and supports billions in trade in and out of the UK.
"And we are ensuring that we can continue serving our customers in a way that they have demanded from us for many years.”
For more updates head to our P&O Ferries live blog.
