Racing NSW chairman John Messara has backed the Australian Turf Club's plans to shed up to 10 percent of his workforce.

In a shake-up of its operations which the Sydney racing club says has been forced because of dwindling wagering revenue, increased operating costs and poor autumn carnival figures, the ATC is tipped to cut more than 20 from its staff of 225.

The redundancies are expected to be finalised within the next week, ATC chief executive Darren Pearce said.

"I would think the ATC are taking a realistic view of their activities," Messara told Sky Sports Radio.

"We are living in a far more competitive world than in the past when clubs had an easier run," Messara said.

"There are many competing leisure industries and also gambling venues.

"We've got to make sure clubs retain sustainability and operate in an efficient way."

The new Randwick grandstand and other facilities have added $35 million to the club's costs.

Pearce said the ATC also inherited a high level of debt from the former Sydney Turf Club.

The ATC was formed in 2011 out of merger between the Australian Jockey Club and the Sydney Turf Club.

An Ernst & Young report estimated it would save the racing industry $21 million a year.