The Department of Corrections has confirmed that a major restructure will see 130 staff lose their jobs.
The cuts will affect staff in both the national office and regional offices, and save about $10 million.
Corrections claims frontline staff will not be affected.
Corrections' chief executive Ray Smith acknowledged that it had been a "testing time" for many Corrections staff.
"I thank them for their patience and professionalism during this time.
"As a result of staff consultation there has been a small reduction in the number of positions lost compared to what we proposed in May.
"My aim is to bring together our three service arms - prisons, rehabilitation and probation - to work as one team and be responsible for the day to day management and rehabilitation of all offenders across the country."
