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
Andrew McIntosh beat his estranged wife to death in November last year. He has been sentenced to life in prison with a minimum of 17 years.
A 21-year-old man has been charged with the murder of Ozell Pemberton, who was stabbed in Sutton Coldfield on May 18.
Pollen: West Midlands Update