The Principal of K College in Kent has resigned a day after around 200 staff went on strike at proposed job cuts.
Bill Fearon has announced that he will leave the college at Christmas.
The college says that it needs to make 140 redundancies and might need to sell its Folkestone campus after it was revealed that it has debts of £16m.
K College has a number of sites across the county including at Tunbridge Wells, Ashford, Dover and Folkestone. Managers and the board of governors are discussing a recovery plan.
Yesterday's walkout was organised by the United College Union and the NUT who have accused the college of mismanagement.
Protesters say there is no economic or education justification for cuts on the magnitude that have been proposed. They are calling on the governors to halt all decisions until staff, students and the wider community have been consulted.
The college said that only a small number of its 1,100 staff took strike action yesterday and that it has made plenty of savings in other areas without introducing compulsory redundancies.
It says it will be back in the black within two years and has no plans to abandon educational needs in the Shepway area.
It has also dismissed a 'Save K College' campaign as it says that it has a strategic priority to improve further and higher education in the communities it serves.
It says this does not require each town to have an expensive campus with high overheads in the traditional ways of the past.