Chief executive Margie Apa said consultation documents were given today to potentially impacted staff in the Planning, Funding and Outcomes (PFO) business unit and Procurement teams.
Apa said that 569 staff employed under individual employment agreements or covered by specific PSA collective agreements have accepted an offer of voluntary redundancy.
"I acknowledge the significant impact these changes have on the lives of our people, as we reset our organisation to get back to budget and move resources and decision making closer to local communities," she said.
Three of the four proposals today cover approximately 200 roles (including vacant roles) in the PFO.
Another 92 roles (including 46 vacancies) would be eliminated from the Procurement Supply Chain and Health Technology Management business unit.
"A key focus of these changes is to consolidate national-level enabling and support functions, reduce duplication and build in more flexibility for how we provide services and insights to regions," she said.
"A substantial number of proposed impacted positions are vacant."
Briefings were being held today for teams covering procurement and community mental health.
Another team that assesses the needs of elderly and sick people at home was next up.
The Public Service Association union has condemned the cuts.
"Community and mental health services, and research, clinical trials, population health, whānau voice and innovation are impacted the most by the proposed cuts," PSA National Health Lead Ashok Shankar said.
"People who will bear the brunt of these cuts include mothers and babies, those impacted by family violence, rural communities, the rainbow community, refugees and migrants, Māori, young people and patients in palliative care.
"These proposed changes are about money, rather than doing what is right for the health and wellbeing of Aotearoa. These senseless cuts need to stop."
The union said announcing the changes a week out from Christmas was causing "considerable concern and anxiety".
