Guernsey's minister for education Martin Ozanne is warning of job cuts in the future.
Mr Ozanne said a reduction in the number of staff was inevitable as his department struggled to meet a reduced budget in 2007.
He has already had to shelve a number of initiatives for school leavers and warned there is going to be less money in the kitty for university grants.
Mr Ozanne said job cuts would be across the board, not just in schools.
"I think eventually there is going to have to be a reduction in the number of staff," he said.
"It will have to be throughout the department, not only in schools, but also in central services.
"We have to look at it responsibly and where it can be achieved without damaging the education service."