The workforce at a Brighouse vehicle manufacturers was almost entirely wiped out after 128 of 150 staff were made redundant in one day.
Administrators were called in to the Universal Vehicle Group, which makes ambulances, security and specialist vehicles, on Monday to break the news to employees.
Despite having a turnover of £15 million last year, the firm, based in Armytage Road, is thought to have suffered recently from overseas competition, loss of market share and a delay in health trusts' orders.
Garry Wilson, one of two administrators appointed to run the firm's affairs, said efforts would now be concentrated on protecting the remaining jobs by arranging the sale of the company as a going concern.
Gary Baker, regional organiser for the GMB Union, warned the effect on Brighouse would be devastating.
He said: "This has come as a huge shock to people. It has been a bit quiet order-wise, but no-one expected this - it is just another nail in the coffin of British industry and manufacturing."
Receivers are also battling to save jobs at Bond It Ltd in Brookfoot, Brighouse, which employs 35 people.
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