Careers New Zealand will be scrapped with its career advice role folded into the Tertiary Education Commission.
Legislation to disestablish the Crown entity is expected to pass early next year.
Initially, 121 Careers NZ staff (all employees, except chief executive Keith Marshall) will be transferred to the TEC, but there is less certainty in the long-term.
"The TEC will then work through a transition process to align its resources, including staffing, to its new business functions," a press release outlining the changes states.
Resources currently provided by Careers NZ to support schools are to be transferred to the schooling sector.