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
Sunshine and scattered showers. Turning dry overnight.
Clear spells and blustery showers. Cool.
West Bromwich Albion Chairman Jeremy Peace says the striker will not be sold this summer despite him handing in a transfer request.