Croydon Council is offering voluntary redundancy to its staff in order to save £100m over the next three years.
All permanent staff, except for school workers, are eligible to apply for the redundancy.
Croydon has already made savings of £25m from this years budget, but they are still facing an overspend of £3m.
The council is also pausing recruitment until April 2016 in order to balance its books.
A council spokesperson said: ‘The council is facing a hugely challenging time with cuts to our grant from government and increasing demand for our services.
'We have already made savings of more than £25m from this year’s budget but are now facing further in-year cuts, and we are currently forecasting an overspend of over £3m. This means further measures are being put in place to try and reduce this as much as possible.’