Cardiff council says it will cut 138 posts as part of plans to find £32m in savings from the next year's budget.
It says the decision follows a month of consultation on proposals.
Council leaders said some of the posts to go are already vacant, and some staff are expected to opt for voluntary redundancy.
They said discussions with trade unions are "ongoing" to redeploy people "where possible".
The new proposals will be discussed by the full council next Thursday.
Officials said it meant the council would be able to limit a council tax rise to 3.7% for 2016-17, down from the original plans for a 4.5% increase.
The council is also proposing to ditch cuts to community arts grants, to the Artes Mundi international art competition and also to Cardiff Singer of the World.
The move follows a large demonstration over the weekend when about 400 people marched through the city in support of grassroots arts in the Welsh capital.
"As a result of changes since the consultation, our budget gap is £14m less than anticipated, but still a very challenging £32m," said cabinet member for corporate services, Graham Hinchey.
He said the latest job cuts come on top of nearly 1,500 losses in the last three years.
"However, we are determined to use this extra money to address our key priorities for Cardiff and our residents," he added.
Council leader Phil Bale said: "We are protecting school funding, spending more and delegating a greater proportion of the budget to schools than other Welsh local authorities.
"Austerity hasn't gone away and there are more cuts to come in the future, but I want our residents to know we are delivering on our priorities and on our vision to make Cardiff Europe's most liveable capital city."