Canterbury College is shedding 116 jobs as part of its masterplan to deal with crippling debts – but will create 76 new posts ahead of a wide-ranging reorganisation ahead of the next academic year.

Principal Alison Clarke is leaving as principal and a new leadership is working out how to save more than £3 million from the college’s spending.

The college in New Dover Road is entering into a partnership with the multi-campus East Kent College whose principal Graham Razey will oversee the running of the two institutions.

He said: “The financial situation, and the deficit, needs to be urgently addressed for 2016-17 and beyond, in order to secure the future of the college and the services it provides to the local community.

“To achieve a balanced budget in 2016-17, and address the ongoing structural deficit, £3,036,000 needs to be saved from the college’s pay costs. The college must generate sufficient cash to service its loans and repay the capital that is due.”

Mr Razey has met staff and unions to discuss the workforce changes. A total of 116 posts will go with 108 people are at risk of redundancy. But 76 posts are being created by the changes.

There are 61 at risk jobs in the estates and capital team.

Other areas where posts are at risk are in the corporate services of IT systems and networking, executive support, professional development; the business development area and the curriculum sections of sport and leisure, hair and beauty and counselling.

The move by the new management team follows the intervention of the Skills Funding Agency, which has agreed to the college's recovery plan.

Across the Further Education sector pay costs as a percentage of income were 63.2% in 2014-15 and are expected to be similar for 2015-16. However, Canterbury College is currently running at 71.9%.

Colin Carmichael, chairman of the college's governors, said: “These measures are designed to future proof the business of the College while ensuring key services and initiatives continue to deliver the highest possible quality for our students, businesses, the wider community and our staff.”

The 116 posts at risk will be the subject of a 45-day consultation.