The Sainsbury Centre for Mental Health is consulting on plans to make more than half its 60 staff redundant.
The charity is to focus on just two areas of work - tackling the high rate of unemployment among people with mental health problems, and improving the quality of care for people in prison.
The resulting change of structure means the organisation will require less than half its current staff, although it insists redundancies will be voluntary where possible.
A spokesperson said SCMH wanted to rely on the core grant it received from the Gatsby Charitable Foundation, one of the Sainsbury Family charitable trusts, rather than on additional earned income.
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