How far into your PhD program are you? I went through a similar situation in my 2nd year. My recruitment rates were awful and overall I felt like I just wanted to quit. However, at this stage my supervisor was well aware of how I felt (I also has a lot going on in my private life). I did not tell her I had applied for jobs, but let her know I felt like quitting. She was so encouraging and supportive and so I decided to continue (which I am glad I did). In fact, whilst filling out applications I realised how much I had learned and the amount of new skills I had acquired. The time I had spent on my PhD certainly would not have been wasted if I had decided to leave. At the end of the day a PhD is not for everyone. I did name my supervisor as a reference as I assumed in most cases she would not be contacted prior to interview and if she was I could say I had told her how I was feeling and was looking to keep my options open. I am sure they could not remove your funding over this however I think it is best to have a chat with your supervisors about how you are feeling and they may offer you some advice.