The city manager of Grand Rapids says up to 150 city employees will be laid off Jan. 1.

Gregory Sundstrom says a major restructuring of the city's government is to be announced Tuesday.

Jobs are being cut to help balance the city's budget. The city has about 1,700 workers, so nearly 1 in 11 could lose his or her job.

Sundstrom tells WOOD-TV that the city faces a deficit of more than $27 million for the current fiscal year, which runs through next June.

Police and fire union leaders tell The Grand Rapids Press that they are expecting layoffs among their ranks.