Loan firm Cattles has announced that it is cutting around 1,000 jobs, including 400 jobs with the closure of its operations in Hull.
Cattles is in refinancing talks with banks and last month sought to raise £200m from shareholders.
The firm added that new business in 2009 at its main lending business, Welcome Finance, would be 75% down on 2008.
In addition to the job reductions – about one-fifth of its total workforce – and the suspension of dividend payments announced in a trading statement last month, a range of other cost-saving measures will be adopted to conserve further cash over the coming months.
Chief executive David Postings said the actions were part of a series of measures to strengthen the business in the uncertain economic environment.
“We have not taken these decisions lightly and we firmly believe that by cutting costs and preserving capital in the business, we can continue to trade profitably, weather the current economic conditions, and continue to serve more than 850,000 customers in this important part of the market”.