The Sainsbury Centre for Mental Health is planning to cut 38 jobs as it moves away from delivering government contracts to focus instead on research.
The charity is restricting its activities to policy analysis in the areas of employment and mental health care in prisons, bringing an end to its work on development projects and training staff in the statutory services.
A spokesman for the charity said: "Because we're a charity, we need to make sure we're not doing work that is essentially the responsibility of the statutory services."
The centre's departure from statutory services has aroused fears that it will leave the government-run National Institute for Mental Health unable to cope. But the spokesman said: "We don't pretend the job is over, but it's now the responsibility of the statutory sector."
Employees are awaiting the results of a redundancy consultation, but current proposals would slash staff numbers from 58 to 20.
- See Good Week, Bad Week, page 56.