Leader Derek Sawyer said the council was taking a 'major look at the budget' in anticipation of a severe standard spending assessment for next year.
'I think other London councils will be looking at very substantial reductions, but the SSAs are only part of what we're doing,' Mr Sawyer said.
The moves are in line with a paper by chief executive Leisha Fullick, Modernising Islington, which proposes streamlining services to cut the council's massive debt problems (LGC, 17 September).
Redundancy costs could be between£7.9 million and£10.4m, he added.
Last week Islington LBC's Unison branch held a rally against council cuts, attended by Local Government Service Group chair Jean Geldart.