In a letter to more than 9,000 council staff, Chief Executive Richard Carr said the posts would go as a result of more efficient ways of working developed through the council’s Partnership for Customer Services and Efficiency (PaCES).
It is a joint venture with Axon, planned to deliver£60m net savings over ten years.
Most of the reduction in posts would be made throughout the council in the areas of customer services, finance, human resources, information technology and procurement.
“Equipping ourselves with new systems and skills will not only help us to be more efficient, it will improve the way we are able to respond to residents and businesses,” he told staff. “But to make those savings, we have to cut up to 300 posts by the end of 2009.”
He stressed that trades' unions would be consulted on ways to reduce redundancies and that it remained council policy that compulsory redundancies would be a last resort.
The council was already trying to avoid redundancies by either advertising most vacancies internally only or by not filling them at all.
“Those staff most directly affected would be kept fully informed and supported throughout the coming months”, he said.
Mr Carr warned that there could be further cuts to posts through further saving programmes designed to help the council respond to the financial pressures its faces in the next few years.
Meanwhile, Wolverhampton councillors David and Carol Bourne have resigned from the council following allegations about the couple's private life in a national newspaper.