Four senior jobs at Scarborough Council will be axed as Government cuts continue to bite amid the growing economic downturn.
Both existing strategic director positions and all six of the existing heads of service posts will be scrapped as part of a major managerial shake-up.
The old structure will be replaced by a new deputy chief executive role and three new senior posts, which will form a new management team.
As a result, a total of four posts will be lost as the council battles to save more than £7 million over the next three years.
And more senior roles could be cut in the coming weeks following a spending review - a process which will be managed by the new team.
Jim Dillon, the authority’s chief executive, said: “As a result of the significant savings we are having to make, the council needs to re-design the way it is managed to take advantage of new ways of working and harness benefits from adopting new technology and more cost efficient ways of delivering high quality services. The senior management re-structure is part of this process and while job losses are always regrettable, they are unfortunately unavoidable in the current climate.
“I appreciate that budget reviews and restructures inevitably bring uncertainty and concerns into the thoughts of staff. However this exercise is very necessary and will be carried out quickly to allow us to move forward with confidence.”
The restructure has been announced following initial consultation with Cabinet members, political group leaders and trade unions.
The two existing strategic directors, David Archer and Hilary Jones, will compete for the deputy chief executive post, while the six current heads of service will pit against each other for the three new senior roles.
The new posts will be appointed in the next few weeks.
Further work will be carried out by the council over the next two months to identify enough savings to balance its books from 2013.
A spokeswoman said: “It is anticipated that the number of other posts at a senior level in the council will also be reviewed in the weeks ahead. At the moment the council can’t say how many posts this will affect.”
Full Council will be asked to formally approve the changes in January 2013 as part of the budget setting process.