158 staff and 14 bus routes are affected by the announcement Western Greyhound has ceased trading.
ITV understands the management teams of Western Greyhound are in discussions with other bus operators to see if any jobs can be saved.
The company website has been suspended and bus drivers remain at the Summercourt bus depot in Cornwall to try and find out more about their future.
Cornwall Council is aware of the sudden closure of Western Greyhound bus company and is working hard with the industry in attempting to secure alternative services as quickly as possible.
We will keep the public up to date through our website www.cornwall.gov.uk/buses, and the press and media, but it is unfortunately inevitable that there will be disruption over the next few days.
One school contract is affected and alternative provision has been put in place.
Western Greyhound ceasing trading is a blow to staff and to the thousands who depend on local bus routes. Urgent need to restore services.
Bus company First Kernow will accept Western Greyhound tickets and passes on all its services after the company has reportedly ceased trading.
We don't want to see bus users left out of pocket.
We'll be accepting all Western Greyhound tickets on our bus services over the next few weeks.
In the meantime, we are working with our Cornwall Council partners to provide replacement services as soon as possible.
A major bus operator in Cornwall has gone out of business.
Drivers for Western Greyhound Ltd arrived for work this morning at the company depot in Summercourt to be told they were being made redundant.
One told ITV News that he had arrived at 5.30am to be given a notice of redundancy by management.
He said there had been no suggestion that the redundancies were imminent and he hadn't been paid for this month.
In the letter to staff seen by ITV News, Managing Director Michael Bishop said:
"Our focus is to pay all outstanding monies to each member of staff as soon as possible.
We are in immediate discussions with other operators to try and secure as many jobs as possible."
Mr Bishop took over the company in December last year.
He cited problems paying a large insurance bill as the reason for the closure.
There's uncertainty this morning over the future of the Cornish bus company Western Greyhound.
It's understood drivers turning up this morning weren't able to get in to work. Senior management are thought to be briefing staff at the Summercourt depot now. First Bus are accepting Western Greyhound passes.
Motorhead will play at this year's Eden Sessions when they return to Cornwall for the first time in 32 years.
The Grammy winners have been announced as the latest headliner act for the Eden Project festival, joining Elton John and Ben Howard on the bill.
We are thrilled beyond words to be able to announce a band that will rock the Biomes in a way the Sessions have never heard before. This is a totally unique show and our first-ever hard rock Session.
Lemmy once said that if Motorhead moved in next door, your lawn will die. We'll have to counsel the plants before he breaks into Ace Of Spades.
To have the Stranglers as special guests promises a loud, proud and never-to-be-forgotten Session.
UKIP leader Nigel Farage has been in Cornwall today.
His feathers were ruffled during an interview with Ian Axton about UKIP's immigration policy.
The party wants to ban people with certain health problems from entering the UK.
Cornwall Council has welcomed today's pledge from Deputy Prime Minister Nick Clegg that he will ensure that the Government will continue to provide financial support for the Cornish Language Partnership.
The Government had previously said that it would not fund the Cornish Language beyond the current programme which ends on 31 March 2015.
This is good news and we look forward to receiving details of the amount of money we will receive.
We put forward a case for continued government support which explained the importance of the language to Cornish distinctiveness and therefore to the people and the economy of Cornwall.
Thousands of people throughout Cornwall will celebrate St Piran, the Patron Saint of Cornwall today.
Events are taking place across the county including a parade in Truro at 1pm starting from St George's Road.
The Penzance St Piran festival, one of the largest in Cornwall, will begin at 10am with a procession at the top of Causewayhead.
Will you be celebrating? Tweet a picture to @itvwestcountry