Mr Bacon, who has been chief executive since April 1992, has a notice period of six months but is expected to leave before the time is up.
A spokeswoman said his redundancy package was confidential. She added that the new management structure, which was agreed by the policy and resources committee at the end of last year, will see savings of up to£155,000 in the first year.
The council's staff will be led by a team of three directors: Graham Cook, director of resources; Nigel Clifford, director of environmental services; and Tom Crowley, director of community services.
Members will take on some of the duties of the chief executive.
A council statement said: 'The policy and resources committee's decision follows a detailed review of the political and management structure. The council has taken into account new government requirements to change the way the council makes its decisions together with its objectives of putting the customer first and implementing sound financial management.'