Steam is to temporarily close the town's Railway Village Museum as part of its latest attempt to save money.
It will free up £5,000 for the financially crippled attraction which is facing losses of up to £1 million because of poor visitor numbers and higher than average construction costs.
Last month Swindon Council agreed to subsidise the flagship museum with nearly half a million pounds.
But the cash injection is not enough to allow Steam to break even.
One of the proposals brought before a cabinet meeting in October when the full extent of the financial crisis was revealed to councillors was to shut the Railway Village Museum in Faringdon Road which visitors to Steam can look around for the price of their ticket.
The restored Victorian railway worker's cottage, which contains period furnishings and fittings, will close its doors on Sunday and re-open next Easter.
The council has been quick to point out that it receives few visitors over the winter months anyway.
Leader of the council, Sue Bates, said: "It is not visited a great deal over the winter and we will be opening it again when it is more likely to receive visitors."
But other councillors have voiced sadness and frustration at the latest cutback.
Mike Bawden, leader of the town's conservative group, who represents Old Town and Lawn, said: "It is very sad. It is just another cutback associated with Steam.
"But it comes as no surprise. The cottage was always a little bit out on a limb because it stands by itself.
"Steam has to be sorted out and the only way to do that is to market it directly to the people who go to the outlet village. We need to get them to go those extra yards from the car park there to the museum."
Poor signing has been one of the main things pinpointed by critics for Steam's lack of visitors and last month the museum was awarded an extra £26,000 to be spent on marketing.
A delayed opening, which meant Steam missed potential visitors over Easter, have also been blamed for low visitor numbers.
Before it opened it was estimated the attraction would draw in 200,000 people in its first year but it now looks like only half that figure will have gone through the museum doors by the end of this financial year in March.
A Thomas the Tank Engine exhibition, former railway workers and a restoration and engineering business have all been drafted in to help revive Steam.
But so far it has not managed to turn around its fortunes and at least five people have been told they will lose their jobs.
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