Oxfam was forced to withdraw from applying for new funds from the UK aid budgetAndres Martinez Casares, REUTERS

Oxfam will lay off scores of staff as it tries to fill a £16 million shortfall in its budget, The Times has learnt.

It is the second big cutback in the two years since employees were accused of sexual misconduct in Haiti.

In a leaked memo to staff, Danny Sriskandarajah, the chief executive, warned of a “difficult time” and said “the [budget] gap must be filled primarily by reducing our core costs”.

Oxfam had income of £434 million in the year 2018-19 but the memo says it faces a deficit of £7 million for 2019-20 and a further deficit of £9 million in 2020-21 unless action is taken.

Mr Sriskandarajah said he would be bringing forward plans to “review the size and shape of Oxfam…