The Duke and Duchess of Sussex live in Canada with their grandson Archie as they begin a new life of financial independence, far from royal office.
A palace source told Sky News that the couple no longer needed an office at the palace and their team was informed last month.
The source said the details are still being finalized and that some staff may move on to other positions in the royal house, others will be laid off.
The Sussexes originally hoped for a dual role, supporting the Queen's, Commonwealth and Harry military associations, but the idea was deemed unworkable.
Buckingham Palace has declared that its new life away from royal office will begin in the spring of this year.
Last week, at the first Sussex event since the announcement of their departure from the royal family, Harry revealed that he had been on therapy for several years to cope with the loss of his mother.
He said at an alternative investment summit sponsored by JP Morgan in Florida that he did not want his wife and son to experience what he had experienced when he was younger.
It is not known if the Duke was paid for the appearance, but it has been speculated that he could have collected charges worth hundreds of thousands of pounds.
Royal observers will wait to see if Harry and Meghan, who are president and vice-president of the Queen’s Commonwealth Trust, will participate in the annual Commonwealth Day service with the royal family at Westminster Abbey on March 9.