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Up to 690 jobs could be cut at Sheffield City Council as it looks to make savings.
The council estimates a budget shortfall of £59m in 2012/13 and said it hoped to make redundancies through volunteers and retirement.
The council is proposing to make various posts redundant including management and clerical jobs.
Councillor Bryan Lodge, said: "We are determined to deliver value for money services."
The council said it was searching for a preferred bidder for a 25-year contract to maintain Sheffield's roads and reviewing office accommodation. Together changes in those areas could save £40m, said the council.
'Estimated figure'
"We are not underestimating the size of the challenge we are facing but it is one that I am certain this council, both officers and councillors, are able to rise to," said Mr Lodge, who is deputy leader at Labour-run Sheffield Council.
"I would like to stress that this is an estimated figure and towards the upper end of our estimation.
"We are not yet in a position to confirm a definite number, as this is obviously dependent on the decisions made by councillors around the budget options.
"However this is likely to represent the worst case scenario and we will of course do whatever we can to reduce the number.
"The council wants to hold constructive talks with the trade unions going forward," said Mr Lodge.
The council is proposing to cut 33 manual workers, 50 clerical staff, 74 management and professional roles, 289 technical staff and 244 staff referred to as other.
No final decision will be made until a complete proposal is put forward to the council cabinet for a full sign off, which is planned for March next year.
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