DURHAM City Council says an organisational shake-up -which will see jobs go - will improve services to residents.
Fifty-two posts are going, including five in senior management - all through voluntary redundancy and early retirement.
But the Liberal Democrat-controlled authority says it is also creating 35 new posts, including construction apprenticeships.
Council leader Councillor Fraser Reynolds said: "This restructure will give us the opportunity to deliver better services for the people of Durham in line with the results of our consultations.
"We have worked - and will continue to work - closely and positively with the trade unions and the whole process will not involve any compulsory redundancies."
Community services director David Marrs said: "It isn't a cost-cutting exercise, it is a rebalancing exercise.
"The council has to get fit for the future. There was no need to do this for financial reasons."
He said the planning service - which is dealing with an increasing number of applications - would be increased and there would be a new marketing section and a strengthened community development service.
Two senior posts - head of financial services and head of cultural services - would be created and there would be at least five new apprentices.
He said that overall the re-structuring, expected to take about four months, should save between £220,000 and £250,000 a year.
But Labour leader Councillor David Bell said he was concerned that the council was losing some experienced officers. He said he had reservations about some aspects of the restructuring and was concerned that those applying for the new posts - from within or outside the council - would have a "level playing field" and that procedures would be followed properly.
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