UNION chiefs have reacted with dismay at the announcement that 88 jobs could go at a North-East college.

City of Sunderland College is facing a financial crisis after having its budget reduced by £3.2m for this financial year.

A 30-day formal consultation with staff and unions was launched today.

The college is among several in the region affected by a national £200m cut in further education funding.

Angela ODonoghue, college principal, said: "Despite looking long and hard at a number of options, we cannot sustain this deficit - as is the situation with a vast number of colleges across the UK - without making staff redundancies.

"It is with deep regret that a number of jobs at the college have been put at risk."

However, she added: "We will now be working with the unions to mitigate these redundancies and try to reduce the numbers significantly."

She said senior managers were meeting with all staff whose job was at risk.

Public sector union Unison said it was working hard to reduce the number of redundancies. Stephen Mead, Unisons area organiser for the college, said: "These cuts will have a direct knock on effect not only on those facing redundancy, but on those in the community already out of work and looking to education as a means to re-skill and retrain for future employment."

Other colleges in the region have already announced potential job losses following the budget cuts announced earlier this month by the Learning and Skills Council.

More than 120 jobs could go at Bishop Auckland College after its budget was slashed by £1m. One in five workers at Redcar and Cleveland College could lose their jobs as bosses wrestle with a £2m reduction in funding.