Education Minister Anne Craine MHK has said that "redundancy is not a conclusion" as the Department seeks to reduce its budget.
A series of seven briefing sessions is currently being held to keep all Department staff - from teachers to youth workers to administrators - included and involved in the decision-making process for next year's budget.
In the wake of the VAT Share Crisis, all Government departments are looking at ways to reduce their annual spend.
The Department of Education has one of the largest budgets in Government: in the 2008/09 financial year, it stood at ?104 million.
It is now addressing what the impact would be of reducing that figure by 15% which, the Minister explains, will be "very difficult in the short-term, like turning round a super-tanker."
Nonetheless, she stressed that fears of redundancies were unfounded: "Our Department operates a policy of redeployment. Redundancy is not a conclusion, it's important that our staff are reassured of that."
She went on to say that there will be a review of the Department's demand-driven policies, and that all areas of wastage or non-essential spending will be identified.
The Minister said that it was unlikely that university grants for local students ("the jewel in the crown of our services") would be affected:
"We have a commitment to Manx students, not least those whose higher education is already underway. The provision for September 2010 is definitely not affected."
Nor will there be, she went on, "a kneejerk reaction" to the revenue issue: "We will not be slicing off parts of services; rather there will be a contraction of our overall service.
"But reductions in costs must be made now to cushion the effects of what will be difficult times in the future."
In the meantime, a dedicated email address has been set up for staff to submit their personal views and suggestions for cost-cutting. So far, says the Minister, there have been many helpful and positive contributions which have chimed with the Department's own draft plans.
"People need to feel that sensible and serious consideration is taking place, that they're being involved in the process and that they have an opportunity to voice their concerns."
The Department's indicative budget must be submitted to the Council of Ministers by mid-January 2010, prior to the finalisation of the Budget in February.