The Central Office of Information (COI) is reducing its staff numbers by 40%, with the loss of 287 jobs.
The freeze on non-essential advertising and marketing spend for the central government has resulted in a significantly reduced amount of work for the COI.
The total COI turnover on marketing and advertising in June 2010 has decreased by an estimated 52% year-on-year. The government has also said that this reduction in spending should continue in the future.
Therefore, staff numbers will be reduced from 737 to 450.
Staff have been offered the chance to be considered for voluntary redundancy initially, but if redundancies do not reach the necessary amount then there will be job losses on a compulsory basis.
Mark Lund, chief executive of the COI, said: “COI has always adapted to meet the requirements of government and the changing media landscape. A leaner COI is in line with new government priorities. Our future will be grounded in continuing to deliver excellent communications to achieve government aims, in the most cost efficient and effective way possible.”
This news follows the COI’s annual report and accounts for 2009/10, which were released at the end of July, and showed that the government spent a total of £531 million on marketing and communications.