Sheffield Council has paid more than £1 million to senior management made redundant over the past year.
The South Yorkshire Star reports that £1.4 million in compensation was given to 14 supervisors that were laid off in 2009-10, with £455,000 in redundancy pay and £960,000 in pension costs.
Staff members' names of those affected by the decision have not been revealed due to data protection regulations.
However, the authority is putting aside a further £5 million for further job cuts during the next 12 months.
According to Sheffield Council, it spends over £1 billion annually providing services and cutting its workforce in this manner will lead to £1.3 million of year-on-year savings.
Councillor Jan Wilson, opposition Labour leader in the region, remarked: "In an organisation as large as the council, with 13,500 staff, there is bound to be a huge movement of staff."
"Obviously people made redundant … are entitled to the payments," she added.