The number of council departments will be reduced from 12 to seven under the plan. The council's Labour leadership says the reorganisation will allow the council to concentrate on providing quality services for people.
While the finance, legal and personnel departments will remain, there will be three new combined directorates - technical services, education/leisure and social services/housing.
Senior officials claimed the changes would create a more 'joined-up' approach - and that the existing 12-department structure was established in response to the requirements of the last government.
'This change is a key part of our wider plans to improve the way the council is managed in the future,' he said.
Acting chief executive Kim Ryley spoke of breaking down barriers to innovation. 'It will help us focus our energy and resources on those things which will most improve the quality of life for local people,' he added.