Hundreds of civil servants are to move into the office space being vacated by Scottish Enterprise staff at Atlantic Quay in Glasgow's financial quarter. Instead of finding new occupants for the prestigious HQ, the Scottish Government is to transfer workers from other offices in the city.

John Swinney, Cabinet Secretary for Finance and Sustainable Growth, said yesterday that government staff in Glasgow would work alongside 100 key staff from Scottish Enterprise (SE) and Skills Development Scotland (SDS). The moves would help deliver improved services, better joint working and savings worth up to £2m a year, he said.

The reshuffle means that the headquarters of SE and Scottish Development International (SDI) will remain at Atlantic Quay, though around 500 SE staff will be dispersed to other SE occupied locations as part of the overhaul of the agency's structure announced by Mr Swinney in October.

They will be joined by around 450 government staff currently based at Meridian Court and the Europa Building, for which alternative occupiers will be sought.

The shift is planned to be completed by April next year, ensuring that employees of the key agencies work more effectively with government counterparts, Mr Swinney said.

For many of the staff of SDS the move will amount to a different name on the door, since they currently work for Scottish Enterprise.

Skills Development Scotland is the body announced by Fiona Hyslop at the launch of the Skills Strategy for Scotland in September 2007, bringing together Careers Scotland, Scottish University for Industry (SUfI) - under which learndirect scotland operates - and the skills and learning elements of Scottish Enterprise and Highlands and Islands Enterprise.

It will be up and running from April 1 with around 1500 staff transferring from their previous organisations.