DUBLIN City Council expects to shed 1,294 jobs by 2014, its annual report revealed.
In a radical restructuring, the local authority is aiming to operate with 20pc fewer staff than the 6,932 it had in 2008.
City manager John Tierney said the financial challenges for the council are ongoing.
"Since March 2011, the city council ... must produce regular reports for the Department of Finance under the EU/IMF/ ECB agreement," he wrote in a foreword to the 2011 report.
Mr Tierney said the council has been meeting the financial challenges, enforcing a €118m reduction in expenditure in the period since 2008.
The key issue was the increase in demand for services and "diminishing financial and human resources", the report states.
But its biggest single source of income, commercial rates, "performed robustly".
Earning from the levy -- which is placed on the owners and occupiers of business premises -- amounted to €325.1m, or 38pc of the local authority's funding for day-to-day services.
Head of finance Kathy Quinn stated: "Trading conditions for business in 2011 involved many pressures.
"Difficulties in the banking sector, the impact of the recession on trading and purchasing patterns and reduced confidence were all evident.
"Rates form the largest single income source of Dublin City Council's day to day activities. The rate collection in 2011 performed robustly in the context of a weakening economic environment."
A total of €57m in savings was recorded by the council in the first year of the Croke Park Agreement on public sector reform, it adds.
Some 219 employees retired last year, with only limited recruitment taking place.
The city's 52 councillors claimed a total of €384,443 in expenses last year and were paid a further €847,287 by way of a salary.
A further €36,000 was shelled out to the six chairpersons of the strategic policy committees, while the Lord Mayor's allowance was €66,562.
The annual Lord Mayor's awards bash, held in the Round Room of the Mansion House, cost the city €31,555.11, while the bill for a civic reception for Prince Albert II of Monaco came to €2,837.
Trips for twinning events between Dublin and the cities of San Jose in the US and Beijing in China cost €39,000.
The city council is the largest local authority in the country, covering an area of 11,761 hectares with a population of 527,612.
One of the local authority's biggest redeployments of staff happened this year in the waste management section.
Dozens of workers were moved to jobs other than bin collection duty after the council sold its waste service to private company Greyhound.