Harry and Meghan 'cut 15 staff as they prepare to quit monarchy'
A source told the newspaper that while efforts will be made to redeploy people within the royal household, others will be made redundant.
A spokesman for Buckingham Palace said they could not comment on the reports.
They had initially hoped for a dual role, supporting the Queen, the Commonwealth and Harry's military associations, but the idea was deemed unworkable.
Buckingham Palace has said the Sussexes' new life away from royal duties will begin in the spring of this year.
It followed a survey finding more than three quarters of Canadians feel their country should not foot the couple's security bill.
Last week, during the Sussexes' first event since announcing they will leave the royal family, Harry revealed he has been in therapy for the past few years coping with the loss of his mother.
He told a JP Morgan-sponsored alternative investment summit in Florida he did not want his wife and son to experience what he went through when younger.
It is not known if the duke was paid for the appearance but it was speculated he could have received a fee worth hundreds of thousands of pounds.
Royal watchers will be waiting to see whether Harry and Meghan, who are president and vice-president of the Queen's Commonwealth Trust, will put in an appearance at the annual
Commonwealth Day service with the royal family at Westminster Abbey in London on March 9.