Nearly 100 jobs are set to go at Work and Income - but the government says even more new roles will be created.
Social Development Minister Anne Tolley's confirmed 98 senior positions will be disestablished, with 107 new positions coming up.
She believes most affected staff will move into a new position at the agency.
Ms Tolley says the change is about efficiency, and not cost-cutting.
"It's not designed to save money - that hasn't been a feature of this. It's about getting a more effective service for the public.
"The workers have been involved in the whole thing from start to finish, so it's not a surprise to them."