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The phrase "a reduction of headcount" is correct and usable in written English.
It can be used in contexts related to workforce management, layoffs, or organizational changes where the number of employees is being decreased.
Example: "Due to budget constraints, the company announced a reduction of headcount in several departments."
Alternatives: "a decrease in staff" or "a cut in personnel".
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But the regulator faces a budget cut of 27% and a reduction in headcount of 20% by 2020 due to cuts to the Department for Environment, Food and Rural Affairs (Defra).
While Intel gave no official update on restructuring, it did indicate it expects a reduction in headcount of 5% to 6% in 2006 through voluntary attrition, said Dhanda.
"An inevitable outcome of this will be an impact on headcount and we expect a reduction of around 600 staff and agency contractor roles by the end of 2017, with the majority of these taking place this year".
"Whilst our primary focus will be on improving efficiencies and on simplifying the way we work, an inevitable outcome of this will be an impact on headcount and we expect a reduction of around 200 staff and 100 contractor roles.
As part of its first quarter earnings report, Yahoo detailed a reduction in headcount.
To maintain profitability in the midst of these capital outlays, cost cuts might have to come from a reduction in headcount among their financial adviser sales force.
Many scholars reference an individually defined percentage of a reduction in overall headcount as a threshold for human capital restructuring (Datta et al. 2010; Eichner 2010).
As with many mergers, this review has resulted in a reduction in headcount at the acquired company".
Vodafone said a reduction in headcount and office locations in places where the two firms overlap was likely but specific numbers are yet to be determined.
While Twitter managed to mitigate the impact of shrinking revenues on the bottom line by slashing costs (largely through a reduction in headcount), this strategy is clearly not sustainable in the long run.
In light of the further deterioration of global economic conditions, Microsoft announced additional steps to manage costs, including the reduction of headcount-related expenses, vendors and contingent staff, facilities, capital expenditures and marketing.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com