More than 50 jobs are being axed at West Midlands Ring & Ride sparking fears elderly and disabled users could be left stranded.
A total of 54 staff are to leave the West Midlands Special Needs Transport Group at the end of March due to budget cuts of £700,000.
The cutbacks have triggered concerns the most vulnerable members of society, including elderly and frail people, could be left housebound.
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A source said the cutbacks included ten drivers and other office staff.
One user said: "What is going to happen to the disabled and elderly who rely on this service? I have been told they are trying to cut down on single users so they can cater more for clubs.
"Ring & Ride is a lifeline to a lot of people in the West Midlands and users have been kept in the dark about the cuts. If you take ten drivers out of the workforce, then the services are bound to be adversely affected."
West Midlands Special Needs Transport Group (WMSNTG) chief executive David Bermingham said: "WMSNTG have completed collective consultation with Unite the Union and individual consultations with all staff affected.
"Fifteen personnel will be taking up alternative full-time posts and 20 personnel part-time posts.
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"In total, 54 staff will be made redundant at the end of March across the whole of the West Midlands which is a direct response to the budget reduction of £700,000.
"We are assisting those affected with local workshops through Job Centre Plus to help people with CVs, understanding benefits. Our pension providers are running sessions to talk through options for those in the company pension.
"In partnership with Unite, we have organised workshops to be run by South & City College to help people with the necessary skills to secure employment and to offer a variety of training courses."
The job cuts come a year after the door-to-door minibus service was saved from closure when transport body made £8.5 million available for 2014-15.
Centro, which funds the service, has had to make £7 million budget cuts this year.