The Insolvency Service has launched a voluntary exit scheme that is expected to see 50 employees in middle manager positions leave the organisation.
It confirmed that the scheme is in response to falling case numbers and is targeted at middle managers and above across the agency.
If case numbers continue to decline then the organisation will reduce employee numbers by between 200 to 400, or 10% to 20% of its workforce, over the next three years
Expressions of interest are currently being sought by the service until 1 February 2013.
In a statement, the Insolvency Service said: “Changes under the scheme will be made subject to the business needs of the service and according to business priorities.
“The voluntary exit scheme is an equitable means of delivering a smaller headcount.”
It said that the scheme is part of its long term strategy to deliver a more efficient way of working.
The grades affected by the current voluntary exit scheme include examiners, senior examiners, assistance official receivers, officer receivers and directors.
The latest redundancies are in addition to the 50 job cuts announced in November last year, which were due to hit level 1 examiners.
The Insolvency Service, which administers the insolvency regime in England and Wales, is tackling a £7m deficit and has come under fire from the government for missing targets.