The AA motoring organisation is planning to cut around 100 jobs, mainly affecting management and administration, staff have been told.
An internal message announced details of a restructuring, which will not affect frontline workers.
The GMB union said the company was also planning to close its national training centre in Melton Mowbray, Leicestershire.
GMB regional officer Paul Grafton accused the AA of "squeezing the last drop" out of the business before it is franchised.
"The closure of the national training centre will reduce structured training and in the end in our view impact on quality of service delivered by the patrol force.
"GMB believes that the reduction in the numbers of managers and administration staff will also impact on the quality of the service and leave problems that should be dealt with unresolved.
"All these cuts are a direct result of the unsustainable levels of debt left by the previous private equity owners."
The AA said it will be consulting on its plans until February 24, adding that the changes were necessary to develop the business.
Simon Breakwell, chief executive of the AA, said: "We believe that we can make our business more efficient by concentrating our resources where they are most needed by our customers - on the front line.
"Hence we are looking to streamline some head office management roles by focusing them further on our core priorities, reducing duplication and automating processes.
"The consultation period will allow us to work with our union the IDU, management forum and indeed our employees to find the best solution for our customers and the business. I am aware that this will be an unsettling period for those affected but we will offer as much support as we can."