The CBI has confirmed that it will need to cut jobs after allegations of sexual harassment and rape triggered a series of resignations among members which has slashed its revenue.

Britain’s biggest business lobby group has been trying to rebuild its reputation and role as an influential force since the claims emerged and led to the departure of its director general and other staff.

It will hold an EGM on Tuesday when members will be asked to vote on a new corporate governance prospectus.

Reports earlier this week claimed the group could fold without major streamlining and new DG Rain Newton-Smith has conceded that Tuesday’s vote is “critical” to its future.

The CBI employs about 300 staff and today issued a statement saying: “In light of the recent loss of some of our revenue, the CBI has to take some difficult decisions.

“We need to reduce our salary cost base by a third among other likely cost saving measures going forward.

“It will be a smaller and refocused organisation in the future. With our prospectus for a renewed CBI now published, we will work with our staff and members on our core mission to help UK business succeed.

“We believe there is a strong basis for our members to continue to back us at our EGM.”