Corrections Minister Judith Collins says about 20 Corrections staff may lose their jobs in the department's facilities management area.
State Services Minister Tony Ryall has warned there will be further job losses in the core public service, even as data released this week showed government departments shed almost 1500 fulltime equivalent jobs in 2009, a cut of 3.8%.
Ms Collins will not say when the jobs will be lost, but says the changes will create significant savings for the taxpayer.