A union representing public servants says up to 50 jobs will be lost from Te Puni Kokiri, the Crown's principal adviser on Maori issues.
The Public Services Association said staff were shocked when they were told yesterday of the cuts.
"Like other government departments, TPK has already suffered significant cuts, but this is a relatively small agency that does a big job," PSA national secretary Brenda Pilott said.
"Over 60 positions have gone in the past three years and $8 million cut from its budget. We understand the department has made $3 million in savings in a range of areas like hiring fewer consultants," she said in a statement.
Ms Pilott said chief executive Leith Comer told staff in a briefing yesterday that there was a shortfall of $5 million and the agency was looking to find that by cutting jobs.