Almost a third of workers at the Prax Lindsey oil refinery are to be made redundant after it fell into administration.
The Insolvency Service said on Tuesday that 125 jobs will be cut at the site by the end of October.
It will leave 255 workers at the oil refinery in North Killingholme, North Lincolnshire as the official receiver continues to seek a rescue deal for the business.
The Government’s official receiver took control of the operation, which is one the UK’s few oil refineries, after owner Prax Group collapsed into insolvency in June.
A spokeswoman for the Insolvency Service said: “This decision was not taken lightly and follows a thorough review of all aspects of the business, following its insolvency.
“We understand that this a very difficult time for all those affected by this decision, and the Insolvency Service will fully support employees subject to redundancy via the redundancy payments service.
“The site remains safe, and the official receiver continues to prioritise health and safety at the site alongside the ongoing process to secure the sale of the refinery.
“The conduct of the company and its directors, following the liquidation of Prax Oil Refinery, remains the subject of an ongoing Insolvency Service investigation.”
Unions have said the job cut plans come despite “at least two bids” to buy and operate the facility as a going concern.
The Unite union has raised concerns it believes the preferred bidder of the official receiver wishes to “mothball the site” and use it as a storage terminal.
Unite general secretary Sharon Graham said: “The Government has been tin eared to the plight of workers at the second oil refinery facing closure in less than a year.
“This makes a mockery of government promises to protect workers and its plan for net zero.
“The Government had promised to ensure that job focused bids would be the priority at Lindsey, yet prior to bids even being considered, they are already issuing redundancy notices.”
