Catering staff working at Waterside Campus in Northampton are at risk of redundancy after students bought less food and drink than expected.
It is understood that 17 members of staff - who are employed by Ch & Co caterers, which is contracted by the university - have received a letter about the consultation.
It says that hours across the team need to be reduced by 120 per week.
The letter also says that some 'outlets' - thought to mean cafes and restaurants - will be closed down.
A family member of one of the staff affected said: "We're not pleased about the way the process is being handled. They are judging everyone by five categories and making people in effect apply for their own job."
In the letter Paul Honey, commercial director of Ch & Co, said students and staff had bought less than half the predicted amount of food and drink.
He said: "The UoN was sold with a sales target of £3 million per annum and the staffing was matched to that level.
"Unfortunately the forecasted sales are in the region of £1.4 million and the client has now asked Ch & Co to close down outlets, shorten hours and reduce the majority of the weekend service.
"As a result, we have to reduce hours worked by all FSA staff by circa 120 hours."
It is understood that some staff have volunteered to reduce their hours. However the proposed reductions total only 35 hours.