Nearly 100 staff at Newport Live have been placed at risk of redundancy following the impact of coronavirus.
The charitable trust which provides sport, leisure and cultural services in Newport has opened a consultation with 97 employees affected.
Chief executive, Steve Ward, said that since re-opening facilities to the public in August it has been "significantly impacted" by Welsh Government coronavirus regulations.
"We recognise these measures are for the benefit of the wider population and are keeping people safe, however these have restricted the return of a number of services, reduced the capacities of others and consumer confidence remains low for the return to sport and leisure," Mr Ward said.
Mr Ward said local lockdowns had further affected access to buildings such as the Geraint Thomas National Velodrome of Wales and the Regional Pool and Tennis Centre, resulting in a reduction in customers and loss of bookings which have brought about "a considerable loss of income".
Newport Centre swimming pool is also currently closed due to maintenance, whilst the Welsh Government regulations require that The Riverfront Theatre and Arts Centre remains closed, the trust says.
"As a result, we regrettably have 97 employees at risk of redundancy who we will be in consultation with during the course of October," Mr Ward said.
"We are working with trade union and employee representatives and will do everything in our power to minimise the impact on job losses.
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"We have endeavoured to avoid this situation and have tried to go over and above throughout the lockdown period to support colleagues, maintaining 100 per cent salary payments until the end of August 2020.
"We are working with many of our partners including Newport City Council, our principal partner, to find solutions.
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"We are currently reviewing the Government's Job Support Scheme to identify how this can help whilst also looking at redeployment options for colleagues wherever possible, as well as seeking to secure rescue funding to mitigate against this course of action and to support colleagues during this difficult time.
"Newport Live remains committed to delivering services for local customers and during the consultation period the business and services will remain operational with Covid-19 guidelines in place to help keep customers and staff safe. We are encouraging local people to return to safe sport and physical activity with us which in turn will help to retain services and roles for our colleagues."