City of Toronto workers are preparing for the possibility of layoffs after a couple of memos sent by the city manager suggested there could be job cuts, reports say.

City Manager Joe Pennachetti wrote about spending reviews that will be launched this summer. He says departments and agencies will be studied to figure out which services are indispensable, which can be done more efficiently and those that need higher user fees.

"The City is aware that the loss of employment has a serious impact on the individuals affected," the second memo read. "Effort will be made to support any staff displaced through these processes."

Coun. Doug Ford, the mayor's brother, says he will be sitting down with Pennachetti to discuss "efficiencies," the Globe and Mail reports.