Scottish Labour has called on the Scottish Government to send in a task force to support City Link workers who have lost their jobs.
Administrators today announced 2,356 job losses, including 143 in Scotland, after a bid to buy the delivery firm failed.
Many of the company’s staff found out about its collapse on Christmas Day and had been warned to expect “substantial redundancies”.
The administrators said 371 people have been retained to deal with remaining parcels and to assist in realising the Company’s assets and winding down its operations.
Scottish Labour’s Finance spokeswoman Jackie Baillie MSP, said: “Our first thoughts are with the workers and their families who have found out that they have lost their jobs. This is a terrible way for them to start the New Year.
“It is essential that the Scottish Government now sends in a task force to provide the highest level and best quality support to the people who have been made redundant.
“Many of these City Link depots are located in parts of Scotland that already have high levels of unemployment. They cannot afford more people out of work.
“The first duty of the Scottish Government now is to find work for these men and women, including retraining them for other opportunities.”
Administrators said there would be 15 redundancies in Aberdeen, 18 in Edinburgh, 68 in Glasgow, 18 in Glenrothes in Fife and 24 in Motherwell, South Lanarkshire.
Twenty-two staff will be retained across the five locations in Scotland.
Hunter Kelly, joint administrator of City Link Limited, said: “It is with regret that we have to announce substantial redundancies at City Link Limited, which ceased accepting new parcels on 24 December 2014. The Company endured substantial losses, which ultimately became too great for it to continue as a going concern, and City Link Limited entered administration following an unsuccessful sale process.
“At meetings across City Link Limited’s UK sites on Monday 29 December 2014 and Tuesday 30 December 2014, employees were informed that there would be substantial redundancies as no new business was being taken on. Many of these employees were sent home, and informed that they would shortly receive formal correspondence to confirm their work status.”
Labour’s shadow Scottish secretary Margaret Curran has written to UK Business Secretary Vince Cable about the situation.