Sixty-eight council workers in Rotherham have been told they could lose their jobs.
The council has started a review of the schemes involving delivery and basic highway maintenance teams in light of cuts in government funding.
The teams look after the construction of government-funded road safety schemes, council-funded minor highway maintenance and bus lane improvements.
The council said up to 27 posts may go. Staff and unions are being consulted.
A spokesman said: "The 68 members of the two teams were informed last month that they were formally under review and the detailed situation was explained verbally at a meeting [on Monday].
"Unfortunately, due to the reduction in funding from the government the two teams can no longer continue to function as they once did and changes will have to be made, including a reduction in staff.
"At the worst, this will mean a loss of 27 posts.
"However, as it was explained to staff and union representatives who were present, all efforts are concentrated in taking a range of actions, such as maximising workload, efficiency savings, redeployment, changing working practices and staff taking up the offer of voluntary early retirement or severance, with the intention that this figure will not be needed."
The spokesman said final decisions would be made towards the end of the year.