BOLTON College is to axe 40 jobs and bosses are calling on staff to volunteer for early retirement.
Staff have been told in a letter from college management that 25 teaching and 15 technician posts need to go if they are to keep their books in the black.
This is the latest move by college bosses to stave off a predicted £1 million shortfall in funding in the next two years.
This has come hard on the heels of a reported deficit last year of £1.3 million which has now been redressed.
College principal Terry Hogan said: "In the next financial year, we must reduce our expenditure and must reduce staffing levels.
"We obviously want to do this through voluntary early retirement. The college has always avoided compulsory redundancies.
"Continuing pressures from the Further Education Funding Council has forced us to again look at making savings."
Mr Hogan said Bolton College is currently funded to the tune of £18.50 per student - but in two years this will fall to £16.20 which represents an expected reduction in funding of £1 million.
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