Leisure bosses have vowed to protect frontline services, despite a 10 per cent cut in grant from Hyndburn council.
Leisure in Hyndburn has been hit by a proposed £80,000 reduction in its council allocation.
Last month the trust posted its 2009/10 annual accounts, recording losses of over £136,000 on income of £2.7 million.
As at March 2010, the trust also owed the local authority more than £350,000.
The trust, which operates services such as Oswaldtwistle Civic Theatre, the town hall, tourist information as well as three leisure centres, has now seen its council grant slashed by 25 per cent in the space of two years.
Council chiefs have to find £2.6 million in budget savings, with leader Coun Peter Britcliffe admitting this is the toughest council budget in two decades.
Trust chief executive Peter Baron said: "As part of the council’s exercise of cost cutting to balance the budget for next year it has renegotiated with the trust that we take a 10 per cent reduction on management fees from the existing level.
"Obviously they are having to make lots of cuts.
"We have carried out a review of our operation and there’s a number of changes in place to change the way we operate, administration-wise.
"Hopefully that will be with minimum disruption to customers. We have asked staff is anybody wanted to be considered for early retirement or voluntary redundancy.
"A number of staff have come forward either to reduce their hours to suit them or because they’re happy to take early retirement."
He added: "There’s no question of cutting back at all in the areas where there’s any health and safety.
"It will be back office-type changes."
