Seventy jobs are at risk at Chesterfield College.
The college, on Infirmary Road, said staff from all areas will be affected.
Principal Trevor Clay said, “We have entered into a period of consultation with recognised unions together with communicating to all staff the reasons for our proposals so we can listen, discuss and respond to any alternative suggestions.
“Last year, through a voluntary redundancy scheme, we were able to largely avoid the need for compulsory redundancies.
“The continuing decline in the number of 16 to 18 year olds within the county, the growth in the demand for apprenticeships, together with reduced government funding are fundamental factors reflecting the need for restructure.”
Mr Clay said he regretted the college had to take such actions but they remained committed to high levels of education and training.
He added: “We are passionate about the future of our College. The student experience remains our priority and providing them with the skills for progression and employment is paramount.”