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Go NorthEast is planning to build a new £7.7m bus depot and support office for up to 560 staff near the MetroCentre in Gateshead by 2013.
Go NorthEast is to create a new centre of operations for its Durham bus fleet at its site in Peterlee, with the creation of 20 jobs.
Go NorthEast is to close its Mile End Road bus depot in South Shields, and 159 drivers will be relocated to North Tyneside, Gateshead, Sunderland and Washington.
Go NorthEast is recruiting 35 new bus drivers for its Gateshead depot.