Two hundred jobs are to be lost at a giant quango responsible for funding further education colleges and school sixth forms in England.
The job losses will reduce staff numbers by about a third
They will go at the Learning and Skills Council's national office in Coventry.
The LSC has stressed that most of the cuts should come from voluntary redundancies and natural wastage.
But compulsory redundancies have not been ruled out, a spokeswoman said. The LSC distributes about £8bn of taxpayers' money every year.
The losses come on top of the 600 posts already taken out of the LSC's 47 English regional offshoots.
Chief executive Mark Haysom said: "Our aim is to reduce costs whilst ensuring a faster, more focussed business that provides leadership, drives national policy and ensures effective local delivery."