Redcar and Cleveland BC hopes to save about £220,000 per year after scrapping its chief executive role as part of a new management model.
Current chief executive Amanda Skelton will take voluntary redundancy and will leave at the end of October.
The council’s longest-serving and most experienced director, John Sampson, has been appointed head of paid service on an interim basis, pending a further review of the management structure later this year.
A report to a special borough council meeting yesterday read: ‘Examination of various models within other local authorities has revealed a move by some councils to implement a structure which operates without the role of chief executive and, given the financial position facing this council and local authorities generally, it is felt, by the current administration, that this is a model that should be pursued for Redcar and Cleveland.
‘It is felt that adopting such a model within Redcar and Cleveland would demonstrate the council’s commitment to reducing management costs while also quickly realising a budgetary saving.’
