The athletes village is being paid for completely with public cash after the Government turned down an offer from the developer to invest ВЈ150m into the scheme.
But Lend Lease is still development manager on the job and its Bovis Lend Lease arm is acting as construction manager.
The Village is now being tendered as separate accommodation blocks with Ardmore, Galliford Try and Wates shortlisted for the first plot.
One source close to the project said: "The ODA has told Lend Lease it will have to cut numbers among its team members.
"They were geared up staff-wise to manage and run the whole job but it has changed completely since then.ADVERTISEMENT
"The blocks are all going to go out to Tier 1 contractors so you don't need vast numbers of Lend Lease people on the job overseeing work."
Lend Lease chief executive officer Steve McCann said: "The project is ahead of schedule and we can now focus on delivery under an attractive fee deal without equity risk."
An ODA spokesman said: "The workforce delivering the Olympic Village will continue to increase as the project progresses.
"All resources on the Village will continually be reviewed to ensure the maximum efficiency."