A government agency office in Northallerton is to close with the loss of 350 jobs.
Workers at the Rural Payments Agency in the Yorkshire town were told today.
A spokesman said the jobs would be split between York and Newcastle.
More top news
In a letter from his top-security prison, serial killer Peter Sutcliffe denies attacking men before murdering women
The former England cricketer reportedly suggested he would have a better chance of being knighted if he "blacked up".
Negotiations are now at an advanced stage for a long-term lease between the City Council and HM Courts and Tribunals Service.