Acadian Coach Lines in New Brunswick, P.E.I. and Acadian Intercity Coaches in Nova Scotia are closing their Maritime operations by the end of this year.
Acadian lines, the only intercity coach line in the Maritimes, says it can't make a profit in the region.
"It is well known that Acadian has been struggling financially for quite some time and we’ve worked hard over the last few years to try to implement a sustainable network," said Denis Andlauer, CEO of the bus service's parent company, in a release.
Denis Gallant, vice-president of Acadian lines in the Maritimes, said the company looked at alternative options before deciding to shut down the operation.
"Under the current regulations you have to provide service to certain areas, you have to go a certain amount of frequencies. And quite frankly, some of those areas, unfortunately, there's just not enough ridership to support or warrant a bus service," he said.
Employees were given the news Tuesday afternoon. About 120 people will lose their jobs in the closure.
Gallant said those workers will be offered employment counselling as their terms finish.
The company was the centre of a labour dispute this winter, where workers in P.E.I. and New Brunswick were locked out for five months.
By the time it ended, many employees had moved on to other jobs
The plan is to shut down all operations by Nov. 30, 2012.