Next week councillors will make tough calls on the "emergency budget" to plug the hole, including savage cuts to transport and fewer community services.
Reade said she knows staff will be concerned about what the budget means to them and their role at the council.
"The economic impact of Covid-19 has meant the entire council group is having to work hard to find savings, so we can continue to deliver the services that Aucklanders value."
She said the council's share of the savings is significant at around $120 million and some tough decisions about how we prioritise and deliver our services for Aucklanders.
Good progress was being made, she said, with each business area in council having
identified savings of about $90m.
These include deferring or slowing down projects, scaling back events or reducing spending in areas like marketing and professional services.
The remaining $30m will need to come from a review of operating spending being led by a transition unit.
"In identifying savings, we have worked hard to minimise the impact on jobs, particularly where our people deliver important services for Aucklanders."
Reade said the council began with contractors and temps, removing more than 600 positions, and have asked staff earning over $100,000 to consider voluntary pay reductions.
"But even with these measures in place, we will need to reduce the size of our workforce to meet the overall savings target.
"We estimate that we will need to reduce the number of full-time equivalent staff in our organisation from around 6500 at the end of June to around 6000.
"This is only an estimate at this stage, but it reinforces that to play our part we will need to become a smaller, more adaptable organisation," 'Reade said.
The job cuts apply to council staff, not staff at the five CCOs.
