Around 150 of its 1,110 staff are affected and 70 full-time equivalent posts will go. The college says it is the result of switching to a more "task-based" curriculum relying less on formal classroom teaching and more on independent computer use and tutorials.
The lecturers' union Natfhe says the situation is "appalling". It claims the real problem lies in apound;3million deficit revealed 18 months ago.
The admissions system over-estimated student numbers, and over-payment by the Learning and Skills Council is being reclaimed over three years.
Principal Mike Hopkins said: "We hope to keep compulsory redundancy to a minimum. But there are times when you have to make hard decisions.
"The new teaching methods are more focused on preparing students for the world of work and are being introduced at many other colleges," he added.