Up to 193 jobs are expected to go at caravan firm Willerby Holiday Homes.
The Hull-based company will spread the redundancy process across six months, starting in September.
It represents 28 per cent of the current workforce and Hull East MP Karl Turner told the Hull Daily Mail that he is hopeful every option possible will be looked at in an effort to mitigate the circumstances.
"I understand the economic climate is the main driver of these redundancies. When companies are working to tight margins, the government should be doing everything to support not hinder them," Mr Turner added.
Part of the reason behind the move is chancellor George Osborne's latest budget, which unveiled a five per cent tax rise on static caravans.
Although 193 are set to lose their job, it represents an improvement on the 350 who were expected to go originally because of various financial pressures.
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Posted by Chris Stevenson