Preston City Council, Lancashire County Council and the University of Central Lancashire have announced the loss of the four staff at the economic development company, although it will remain in name and be taken in-house.
A statement from the founding partners said: "In June, the government announced the abolition of the regional development agencies and in July the North West Regional Development Agency, confirmed there would be no further funding for the Vision Board beyond 31 March 2011.
"The Vision Board has searched for alternative funding but, in the current financial circumstances, has been unable to find a sustainable source of funding. Therefore at its meeting on 2 November 2010 the board of Preston Vision decided reluctantly that it would have to lose its staff."
The staff who will be made redundant in March are chief executive Eliot Ward, his PA Jane Jenkins, projects director Marie Bintley and Emma Blackman, head of marketing and communications. Mike Brogan, development consultant, has been working on an ad hoc freelance basis.
The statement went on: "The Board agreed to retain the company structure and remain operational in order to ensure regeneration plans are still carried out by the founding partners; Lancashire County Council, Preston City Council and UCLan. Excellent work had been completed by the staff of Preston Vision and this will create a strong foundation for the future.
"Although it will not have its own staff, Preston Vision, the company charged with promoting regeneration in the city, will remain operational."
Malcolm McVicar, chairman of the board, said: "During its 12 month operation, Preston Vision has laid strong foundations for the branding and marketing of the city.
"We would like to thank the staff for all the excellent work they have done on behalf of Preston and we deeply regret that we are unable to continue to fund their posts and we wish them all the best for the future.
"We have a clear vision for Preston which is still attainable. It may be that the scale and pace of achievement slows down but we have clear priorities for the future and together the founding partners will be working hard to draw in funds from new sources such as the proposed Lancashire Enterprise Partnership, the Evergreen Fund, and the Regional Growth Fund."