Arts Council England plans to shed 118 jobs by July next year as part of a plan to cut its administrative costs.
The arts funding body will cut its workforce by 21 per cent from 559.5 full-time posts to 442, including cutting the number of executive directors to four from eight.
The cuts follow the government’s comprehensive spending review in 2010, which required ACE to cut its administration costs to £12.2m in the year to March 2015 from about £26m in the year to March 2011.
The ACE overall annual grant-in-aid will drop to £349m by 2015, from £439m in the financial year ending March 2011.
The charity will also halve its property costs by reducing the size of its offices. It will now have major offices in London, Birmingham, Manchester and Bristol.
Alan Davey, chief executive of Arts Council England, said: "These savings have been challenging to achieve, given our already pared-down structure.
"There is an absolute need for the Arts Council to remain an intelligent investor, leading growth and ambition in an arts and cultural sector which contributes so much to the wealth, quality of life and reputation of our nation."