As part of the restructure, the organisation has proposed 'a streamlined advocacy and communications team', which will see 65 posts reduced to 40, making up a head office team and three regional advocacy teams.
The cost-cutting measure is expected to save £6.5m a year, which the organisation says will be reinvested in the arts.
A period of formal consultation with all Arts Council employees about the proposal has now begun and will run until 26 May 2009.
Final plans will then be drawn up and submitted for approval to Arts Council England's National Council in July 2009.
It is expected all the changes will have been implemented by the end of March 2010.
Arts Council England is the national development agency for the arts. Between 2008 and 2011, the agency plans to invest £1.3bn of public money from government and a further £0.3bn from the National Lottery in the arts.