Car dealer Pendragon has said it will cut 1,800 jobs and shut 15 of its dealerships.
The firm, based in Annesley, Nottinghamshire, runs the Evans Halshaw and Stratstone brands.
It said a review had begun before coronavirus but the pandemic had made the trading situation more difficult.
About 400 of the jobs will be from branches, with the rest coming from a wider restructuring of the business, aimed at saving £35m a year.
In a statement, the company said some of the sites being closed had made a combined loss of £2m last year.
Bill Berman, the firm’s chief executive officer, said: “The Covid-19 pandemic is a uniquely challenging situation and we want to protect as many jobs as we can sustainably and the proposed redundancies are, of course, extremely regrettable.
“The actions that we are undertaking are for the long-term health and success of the group and ensure that we emerge from the pandemic as a more competitive and stronger business with the ability to thrive in the future.”
A 45-day consultation period into the cuts has begun.
Evans Halshaw currently has 118 locations across the UK and Stratsone has 59.
The company has not released details of which branches will close.
Last month, rival Lookers said it would cut 1,500 jobs and close 12 of its showrooms as part of efforts to slash costs.