Rentokil Initial is closing its workwear and linen operations at Initial Hygiene UK with the loss of up to 1,700 jobs.
The support services company said the division had suffered from a significant lack of investment and a “flawed commercial strategy”.
“Having explored thoroughly all options for exiting the loss-making operations, the company has regretfully concluded that these operations will be closed on 30 April,” the company said in a statement.
Up to 1,700 positions could be made redundant, the firm said.
In December, the company announced plans to freeze its final salary pension scheme and close it to its existing members, the first such move by a FTSE 100 company.