Travellers' group Pavee Point has said redundancies are a real possibility following the withdrawal of its funding under the community development programme.
Director Martin Collins said they were shocked and dismayed to be told earlier this week that their core funding was being withdrawn.
He said the payment was worth €159,000 last year and paid the salaries for four employees including himself.
Mr Collins said that without this money there would have to be redundancies.
29 community development projects around the country were told this week they would no longer get funding from today.
Mr Collins said the reason they were given was that the organisation has 'a limited approach to community development'.
The Department of Community, Rural and Gaeltacht Affairs has said it is rationalising funding where there is duplication or issues of governance.
The withdrawal of funding is subject to appeal.