Staff were reportedly told on Friday by management that around 200 full time positions would be cut from the department.
Those affected will leave in the months before Christmas, according to Fairfax Media.
Elizabeth Kelly, the department’s deputy secretary of governance, emailed employees to inform them that the size of the department’s workforce was above its affordable average staffing level.
“In preparation for the 2016-17 financial year, we will need to take steps to reduce our staffing levels,” her email read.
“This reduction can be managed through a combination of natural attrition, disciplined recruitment
decisions and a voluntary redundancies round.”
Over the past two years, the department has undergone the cutting of about 300 jobs.
Fairfax reported that those interested in voluntary redundancy will have the option to consult their managers, with a redundancy estimate calculator being developed to determine how much money employees will leave the department with.
“Your division head or regional manager will need to provide in-principle endorsement before you can proceed to requesting a VR estimate,” Kelly said.
“It's important that we begin the process as soon as possible and priority will be given to staff able to leave the department in the next couple of months.
“I know this will create uncertainly for some of you so I strongly encourage you to speak with your manager in the first instance.”
A spokesperson for the department told Fairfax that by making the adjustments as soon as possible, the size of the adjustment could be reduced.
The Australian Public Service is set for a fresh round of redundancies, with hundreds of jobs in the Department of the Prime Minister and Cabinet to be cut – and employees were reportedly informed via email.