The head of the HSE says the agency has too many managers and layoffs will begin in the New Year.
Paul Reid's told the Sunday Business Post that the administration centre of the health service is "too big" and "out of kilter" with the needs of the front lines.
He's announced plans for a "targeted and strategic" redundancy scheme for HSE managers in the first half of next year.
Mr Reid, who took over as HSE boss just six months ago, admitted the Executive is "not strong at some of the basics of managing people and managing finance".
And he's indicated a second round of layoffs might follow in the second half of the year when a restructuring plan is due to be presented to the Government.
Mr Reid's also announced that from today, he's cutting the HSE's senior management team from 23 to an executive group of just nine.