Under the review, the commission faces a 5 per cent cut in its annual budget each year for the next three years. Andrew Hind, the commission's chief executive, told Third Sector that it would move its London office, in Blackfriars, to smaller, cheaper premises in the city in 2009, when its lease expires.
Some London staff will be moved to the commission's other offices in Liverpool and Taunton, which cost less to run, he said.
"The London office is in a lovely location, but it's more expensive than we can honestly justify going forward," Hind said.
The staff cuts - nearly 7 per cent of the workforce - will take place mostly in services the commission has decided to axe, such as charity visits and random account checks. "These services have been very useful, but their value to us, the taxpayer and the sector has been limited," Hind said.
Instead, the commission will adopt a risk-based approach with a more focused use of resources.
Hind said he was confident that staff reductions would be achieved through natural wastage and voluntary redundancies rather than through compulsory redundancies. Modernisation of back-office services such as IT, HR and procurement, along with consolidation of services within the organisation, will also deliver significant savings, he said.
Compensation packages and reorganisation costs will be financed by a £3m modernisation fund from government. The commission was also granted another £500,000 on top of its baseline budget to help it deliver its new obligations under the 2006 Charities Act.