Britain's Special Forces Support Group (SFSG) is to lose 600 roles, prompting fears that it will hamper the fighting capability of elite units such as the SAS.
The Ministry of Defence has drawn up plans to restructure the SFSG which was expanded to cope with the demands of the the war on terror, reports the Sun.
The SFSG provide logistical and intelligence support to elite units and the MoD believe there is no longer the demand as troops are gradually withdrawn from Afghanistan.
Britain's elite forces play a crucial but rarely acknowledged role
According to Sky News, no personel will actually lose their jobs. Members of the SFSG are drawn from other units so members will return to their original positions.
The move comes as prime minister David Cameron pledged to commit UK forces to a "generational struggle" against terrorism in North Africa.
One source speaking to the Sun said: “It is utter madness at a time when we need to be investing in special forces.
"If these cuts go ahead it will leave us over-stretched for years to come.”