The Department for Education has reduced its area-based grant to councils by £311m, £1.3m of which has been cut from Blackpool's allocation.
The authority has committed to protecting parts of the service. But 90-day redundancy notices have been handed to anyone working in services partly or wholly funded through the grant.
Bernard Booth, assistant head of Blackpool young people's services said 60 posts are currently at risk out of "around 165" posts.
Areas affected include all Connexions staff, teenage pregnancy, positive activities and targeted youth support.
Community and Youth Workers' Union Blackpool representative Andy Walker said that frontline staff are angry because managers appear to be exempt from the cuts.
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