Jobs at Tayside Contracts could be at risk as councils make millions of pounds of budget cuts over the coming year.
The grim warning came from the service provider’s managing director Iain Waddell.
Tayside Contracts is an arm’s length organisation which sets its own budgets but cuts could see the councils cut back on work which would normally go to Tayside Contracts.
Workers who could face losing their jobs include those who provide the frontline services for Dundee, Angus and Perth and Kinross councils.
Mr Waddell said council savings means there could be job losses in all these areas.
He said: “At this stage we have not put out any offers to our staff regarding voluntary redundancies but we may have to review that situation.”
The organisation provides school cleaners and dinner staff, janitors, school-crossing patrollers, as well as vehicle and road maintenance staff.
Measures to protect jobs could include redeploying staff to other schools or centres to work if positions were being reduced, said Mr Waddell.
“We are also working with our staff and with the unions to mitigate and lessen any impact this current financial situation could have on our workers.
“We have also not been replacing vacancies that have occurred in some areas.”
Councillor Jimmy Black, member of the board of Tayside Contracts, said council decisions would have an impact.
“I’ve certainly not heard anything about job losses but the vast bulk of Tayside Contracts’ work is for the three councils Angus, Dundee and Perth and Kinross. Clearly any cut to a council budget could have an effect.”