SAN JOSE, Calif. (KCBS/CBS-5) — Downtown San Jose could lose an entire engine company because the city and the firefighters union could not come to an agreement on a contract stalemate.

Fifty firefighters around the city could be laid off as soon as this weekend because of budget problems. The mayor had sought a 10 percent pay cut from all city unions, including the firefighters union, to close a $118 million deficit.

“They had proposed concessions that would save money and save certain jobs. But it would leave a gap of approximately $6 million because they are requesting a no layoff pledge,” the city’s lead negotiator, Alex Gurza, told CBS-5. Click here to listen.

Four engines around the city will likely be cut because of the contract stalemate. Emotional farewells have already begun at Fire Station 30 where some neighbors are concerned about longer response times once the closures happen.

“They haven’t presented to us any verifiable reason why they need that money,” said the president of San Jose Firefighters IAFF Local 230, Randy Sekany.

The contract issue could go before an arbitrator on Sept. 30.