Shelforce jobs to be cut by Birmingham City Council
The majority of jobs at a Birmingham City Council-run factory employing people with learning disabilities are to be cut.
The authority announced that Shelforce, which makes UPVC doors and windows and employs 81 people, had made losses of £4.5m over five years.
The council said Shelforce's operation was outdated and it could now operate with a minimum of 13 employees.
Tony Rabaiotti from the union Unison said he was "deeply disappointed".
A review of the Erdington factory was announced last December.
The authority said more people could be employed in the future.
But it said an alternative scheme employing 41 would not be sustainable.
Councillor Tahir Ali said: "We are doing all we can to support staff with the aim of redeploying as many as possible within the city council or supporting them into mainstream employment."
A number of people have taken redundancy, the council said.
Mr Rabaiotti said: "I'm worried there could be as many as 50 redundancies.
"Redeployment would be great but at the end of the day we do need a workshop like this to keep going because it builds up self-esteem for people who need it in the job markets."
A report on the future of Shelforce is due to go before the council's cabinet on Monday.
In October, the Labour-run authority said £600m of savings must be made by 2017, £200m more than originally thought.