A Bay of Plenty training centre says it's been unfairly penalised by the Tertiary Education Commission with a 40% cut in its funding.
Active Training is based in Mount Maunganui and provides business and employment courses to at-risk youths and the long-term unemployed.
Its director, Steven Lee, says he understood there might be some cuts after the Government reduced the commission's funding in this year's budget.
But he says he was shocked at such a dramatic cut in funding, because the organisation had exceeded agreed goals for student numbers.
He says Active Training will now have to close its centre in Katikati, leaving the town without a training provider, and will lose six of its staff.