Facilities at a Somerset arts centre are to close with five people being made redundant, it has been announced.
Black Swans Arts in Frome is to close its shop and office.
The centre has had 25% of its budget cut as grants totalling £20,000 from the county council and Mendip District Council were axed.
Chair of Trustees Luke Wilde said the cuts were "especially upsetting after a year where our staff have put so much into re-invigorating Black Swan Arts."
He added: "This action has been necessary to keep Black Swan Arts financially viable and preserve it for the coming years.
"While the substantial donations to our 25th anniversary appeal demonstrate the strong local support for Black Swan Arts, Trustees have so far been unsuccessful in finding a replacement for core funding for future years.
"I hope you will join me in acknowledging the hard working staff we have sadly had to let go, and may I ask for your continuing support."
The gallery, Divas Café and the studio shops remain open as usual, and the Round Tower is available to the community to rent for meetings, performances and workshops.
Ten arts organisations across Somerset, including the Brewhouse in Taunton and the Merlin in Frome, lost funding from the county council after it stopped all its direct arts grants for the next three years.
The authorities, which are both Conservative-controlled, said cuts had to be made as they faced a 25% funding cut from central government over four years.