LABOUR Party staff have been told to expect job losses as senior management plan a major restructuring of the workforce.

The party’s finances have taken a hit due to a membership decrease and the cost of fighting expensive legal cases in recent years.

Now Keir Starmer’s team hopes to remove about 90 posts by way of voluntary redundancies, which would equal a quarter of the workforce overall, Politico reports.

The proposals were drawn up by former civil service head Bob Kerslake and director of finance Simon Mills in a plan called Organise to Win.

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Staff at Labour's main London and Newcastle offices have been informed, it was reported.

Yesterday, advisers to the shadow cabinet were told to expect their staff numbers to reduce by about a third, a source said. 

One union official claimed three left-wing figures had been told they were likely to be let go, while another told Politico: “This is about two things. They’ve run out of money and they need redundancies, but it’s also a chance to get rid of remaining left-wingers.”

LabourList reports that employees will be updated on the specific jobs to be cut at a meeting on Tuesday.