Bus operator Stagecoach is axing its Chorley depot - resulting in some of the town’s routes being run from Preston.
More than 20 jobs at the engineering facility on Eaves Lane are affected.
Our main concern now is to consult with staff and trade unions, looking at every option available to those affected.Elisabeth Tasker
Stagecoach said it is expected that the majority of employees will relocate to another Stagecoach depot, either in Chorley or in Preston.
The company has also announced it is carrying out a review of its local bus network in South Lancashire over the next three months.
The Scotland-based bus giant blamed the closure - in September - on rising costs and the significant investment required to modernise the existing building. The company is consulting with trade unions over job relocations.
Elisabeth Tasker, managing director of Stagecoach Merseyside and South Lancashire, said: “This has been a difficult decision.
“However, it’s important that we do what is right for our business to ensure stability for the majority of our employees over the long-term.
“It is also essential to allow us to continue delivering low-fares and affordable travel for the customers who rely on our services every day.
“Our main concern now is to consult with staff and trade unions, looking at every option available to those affected.
“Like other sectors of the economy, we are continuing to see rising costs across our business.
“In addition, Eaves Lane depot is in need of significant modernisation, as it is no longer fit for purpose, and the costs involved to do that work are prohibitive.
“We remain fully committed to providing high-quality bus services in South Lancashire.
“I would like to assure employees that we will be working to re-deploy staff to other local depots wherever possible.”
Stagecoach also has an office at Chorley Bus Station and a vehicle outstation at FDC business park, Chorley.
Councillor Alistair Bradley, leader of Chorley Council, said: “I just hope it doesn’t lead to any job losses and that we can continue to maintain bus services across the borough and see if there are ways of improving them.”