Staff at the Ministry of Foreign Affairs and Trade are expected to learn their fate today.
RadioLIVE understands they'll be given details of job cuts this morning ahead of a media briefing.
Labour's Foreign Affairs spokesperson Phil Goff believes there could be as many as 260 redundancies:
"It is D-Day for ministry staff," he says. "My understanding is about one in four people within the Ministry of Foreign Affairs is about to lose their job.
"That's slash and burn."
The Government wants to save $40 million from the ministry's $400m a year budget and about 40 diplomatic positions are expected to be axed along with administration, support and policy analyst jobs.
It's also thought embassies in Warsaw and Stockholm will be closed down permanently.
Foreign Minister Murray McCully has confirmed there will be changes but isn't commenting on the details.
RadioLIVE / NZN