Diggerland Devon is set to close next month after taking a £100,000 hit due to the pandemic.
About 60 members of staff will lose their jobs when the theme park in Cullompton closes on September 5.
Speaking to DevonLive, the park's parent company Diggerland UK confirmed it lost over £100,000 in the 2021 season alone amid tough trading conditions caused by the coronavirus pandemic and steep fall in visitors.
The remaining Diggerland parks in Kent, Yorkshire and Durham will remain open.
A spokesperson for the company said: "About 60 staff will sadly be laid off. We have lost over £100,000 this 2021 season alone."
Its closure is a blow to the tourism sector in Devon and the job losses will be severely felt in the Cullompton and Willand community.
The park, close to junction 28 of the M5, opened in May 2001 and attracted tens of thousands of visitors each year.
It was the brainchild of Hugh Edeleanu, a businessman who supplied digging machinery across Europe.
He noticed children were fascinated by the diggers and opened four theme parks in the UK.
Have you seen our Linkedin page for BusinessLive South West - follow us here
The Covid-19 health crisis had a 'detrimental effect' on the Devon business, the company said, due to its rural location and heavy reliance on tourism.
When outdoor restrictions were lifted in April the indoor parts of the park remained closed.
The company's statement today said: "The Devon park has struggled with staffing levels this year and has lost money heavily since the start of the pandemic."
