Prince Harry and Meghan are understood to have cut the roles of 15 members of staff as they close their Buckingham Palace office and step away from royal life.
The Duke and Duchess of Sussex are living in Canada with their baby son Archie as they start a new life of financial independence, away from royal duties.
A palace source told Sky News the couple no longer need an office at the palace and their team was informed last month.
The source said the details are still being finalised and while some staff may move to other roles in the royal household, others will be made redundant.
The Sussexes had initially hoped for a dual role, supporting the Queen, the Commonwealth and Harry's military associations, but the idea was deemed unworkable.
Buckingham Palace has said their new life away from royal duties will begin in the spring of this year.
Last week, during the Sussexes' first event since announcing they will leave the royal family, Harry revealed he has been in therapy for the past few years coping with the loss of his mother.
He told a JP Morgan-sponsored alternative investment summit in Florida he did not want his wife and son to experience what he went through when he was younger.
It is not known if the duke was paid for the appearance but it was speculated he could have received a fee worth hundreds of thousands of pounds.
Royal watchers will be waiting to see whether Harry and Meghan, who are president and vice-president of the Queen's Commonwealth Trust, will put in an appearance at the annual Commonwealth Day service with the royal family at Westminster Abbey on 9 March.
(c) Sky News 2020: Prince Harry and Meghan axe 15 staff in Canada move