Up to 2,000 workers at Wolverhampton City Council face losing their jobs because of budget cuts.
The council currently employs almost 6,000 people - meaning a third of its workforce is under threat. The money it gets from government has been halved from £284 million to £137 million a year.
To help raise money, council tax will go up by almost 2%.
Staff were told of the changes at a series of meetings today. They have also been told they will get less sick pay and there will be a freeze on pay rises. Drivers caught on camera using bus lanes will also be fined.
Councillor Roger Lawrence said the reduction in funding to local councils will 'damage' Wolverhampton.
More top news
Charity Diabetes UK estimate 14,000 people in Birmingham have undiagnosed type 2 diabetes, and are on the road this week to find them
Doctors who graduated from universities in the Midlands last year are unlikely to be able to pay back their student loans in full.
A study by Loughborough University reveals that dehydration leads drivers to make twice as many mistakes as when they are properly hydrated.