A radical organisational shake-up at Birmingham City Council’s schools and children’s social services department will see 84 managers lose their jobs.

Almost 130 senior officials face the prospect of having to apply for only 43 posts in a new slimmed-down structure.

The redundancies are part of a strategy to improve performance at the department, where services for children at risk of physical and sexual abuse were found to be failing by Ofsted and placed under special Government improvement measures.

In addition, the council is to close all 13 Birmingham community day nurseries with 48 job losses for nursery nurses and assistants.

The decision represents a U-turn after council leaders insisted six months ago after a period of public consultation that the nurseries, which cater for vulnerable children, would be saved.

When all of the changes affecting the Children, Young People and Families Directorate have been implemented the council expects to save £21.5 million this year rising to £69 million by 2014/15.

Senior management staff whose jobs are at risk are on salary levels of between £50,000 and £70,000.

They have been invited to attend special assessment days at the University of Birmingham, where they will be considered for roles in the new structure.

A consultation document issued to staff says the council has to make sure “the right person is in the right role” in order to improve standards.

It says a “robust” selection process will be followed, and the assessment days will be externally managed.

The selection criteria for redundancy is based on a 60/40 split between past performance records and expected future performance.

The new structure was approved by the council cabinet in March.

Members were warned about redundancies, but no estimates for the number of jobs likely to disappear were given.

The community nurseries will close permanently at the end of August.

But the council insists that the closures should not be seen as a cut because services currently provided by the nurseries will be merged with children’s centres or family support teams in a bid to save cash. Private nursery care and child minders will also be offered to parents.