Nearly 50 full-time posts will be axed at City College Brighton and Hove as part of a major restructure.
Staff and union representatives were told of the changes yesterday as a 30-day consultation over the college’s future gets under way.
A total of 48 full-time roles will be lost, half of them teaching staff and the rest from other services.
The college said courses which are no longer viable or cost-effective could be cut.
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Principal Lynn Thackway said the college had no choice but to launch the consultation because it was vital the college returned to a position of “financial health”.
She told The Argus: “We are determined to ensure that the college remains strong and serves the city and all of our current and future students.
“The restructure is not linked to our capital development plans. This is about realigning the staff costs at a time when funding is being cut or reduced with many of our costs rising.”
She added bosses remained focused on teaching and learning.
Bosses at the college, including Mrs Thackway, have come under increasing pressure from unions in recent weeks over allegations of a “financial crisis” developing.
Mrs Thackway said financial difficulties had largely come from changes to government funding and it was an issue facing the entire further education industry.
Alison Kelly, from the lecturers’ union UCU, said staff at the college had lost all confidence in its leadership.
She said: “Members of staff – including senior managers – have told us they are extremely concerned and have complained that their views and advice are constantly ignored.”
Vice-principal Rebecca Conroy said: “We have been upfront, honest and transparent about the fact that we have to make savings.”