CATERING staff at the Isle of Man College were warned that their jobs may be at risk in June.
Staff were told that the refectory was making a £182,000 loss each year and that there would be a consultation to find an alternative solution.
Education Minister Eddie Teare MHK said: "The rate of increase in the loss has more than tripled in the last five years. We need to do something about it.
"Basically what we have said is that we want to avoid unpalatable measures and can the staff who know how the operation works come back to us and tell us how we can address this."
The principal of the Isle of Man College Dr Ian Killip said he was hopeful that the staff could find ways to make the cafe profitable without sacking anyone.
He said: "All the staff at the College are contributing ideas about how we might increase the income and any ways in which we can change operating practices to reduce the costs and I’m fairly hopeful that over this consultation period we will be able to have a solution to the deficit without redundancies."
Update: The Education and Children Minister Eddie Teare MHK said that a positive meeting had been held over future of Isle of Man College refectory. Click here for more information.