Construction group ISG, which was in the middle of numerous government projects including work to prisons, has collapsed into administration in the UK.
The majority of its 2,400 employees have been made redundant after the UK business appointed joint administrators at EY, with trading stopping immediately.
The construction services company had been trying to find a buyer but failed to secure a suitable rescue deal, EY said.
The London-based business employs about 2,400 people across its UK business, the majority of whom will be made redundant with immediate effect.
Around 200 employees will initially be kept on to assist the administrators in winding down the business.
ISG is involved in 69 central government projects totalling more than £1 billion, including work on prisons for the Ministry of Justice, data analysts Barbour ABI said.
A spokesperson for the Government said: “We have implemented our detailed contingency plans and affected departments are working to ensure sites are safe and secure.”