Somerset CC has proposed more than 100 job cuts as it faces considerable financial pressure.
Council leader David Fothergill stressed that no decisions had yet been made on redundancies but confirmed a formal consultation with trade unions had started.
The council reported it was facing a projected net overspend of £12m earlier this summer and is expected to publish updated figures next week.
Cllr Fothergill said: ‘We’ve found around £130m of savings and efficiencies in the last eight years and you cannot take 40% of funding out of an organisation without there being an impact.
‘The trend of falling central Government funding and increasing costs and demand continues, and there is no sign of any bailout from Westminster.
‘The coming weeks will be very difficult for the council and its staff, but we have to achieve financial stability and the end result will be a council that can afford itself and continue to provide valuable, long-term sustainable services for our residents.’
Somerset’s Labour leader, Cllr Leigh Redman, criticised the Conservative-led council’s decision to cut jobs and blamed the previous two Tory-led administrations.