Harrogate Borough Council leader Don Mackenzie said the losses were “likely” at the Harrogate International Centre when security, portering, housekeeping and stewarding services are outsourced to private firms.
Coun Mackenzie said the centre has been hit hard by the economic downturn and is currently losing around £1 million a year, despite an earlier cost-cutting programme which saw 39 jobs lost in July.
The outsourcing plan is designed to save around £500,000-a-year. Some staff are likely to be transferred to the private companies which win the contracts.
Staff union Unison has written to the council in protest, questioning both the legality and the business case behind the decision.