Liverpool City Council could shed up to 1,000 jobs to avoid a financial crisis, the BBC has reported.
The authority is under pressure to save £120m by 2014, and said jobs cuts could not be ruled out, although it hoped the majority of roles would go through natural wastage and retirements.
A council spokesman said: “The city council is well advanced in planning its budget for the next financial year.
“We are determined to continue delivering quality services for the people of Liverpool and are looking at a whole series of measures to reduce costs and improve value for money through better efficiency.
“Local government is facing a challenging government settlement as a result of the current economic climate, and changes in the size and composition of the workforce are inevitable.”
Union officials will meet with the council next week to discuss the implications of the budget shortfall.
Roy Gladden, from the GMB union, said he opposed job cuts.
“From the trade union side, what we’re saying is we now have a responsibility and a little bit of time to look at the £90m-£120m, and it doesn’t have to equate to job losses,” he said.