More than 4,000 jobs would go at the Department of Trade and Industry (DTI) under plans spelled out by the Conservative party.
The proposals are the latest instalment in the Tories' plan for saving taxpayers' cash by slimming down Government. They are set to be unveiled by shadow chancellor Oliver Letwin, and shadow industry secretary Stephen O'Brien.
The Conservatives said its proposals will streamline its functions and "stop government from eating up so much of people's money".
The plans would mean a reduction of 4,060 posts at the DTI, made up of 3,395 civil servants at the department's London headquarters and 665 staff currently working for the UK Trade & Investment organisation.
The Tories said that all the job losses would be achieved through natural wastage and voluntary redundancy.
Remaining staff would be focused on identifying and removing barriers to business growth, deregulation of business, and representing business interests elsewhere in Government, in the EU and overseas, said the Tories.
The Liberal Democrats claim they will scrap the DTI altogether.