Prince Harry and Meghan, Duchess of Sussex are reportedly set to axe 15 members of their UK staff.
The 35-year-old prince and Meghan, 38, have recently opted to step back as senior members of the royal family and their decision to close their office in Buckingham Palace comes amid speculation they plan to spend the majority of their time in North America.
One or two of the staff members may be absorbed back into the royal household, according to the Daily Mail newspaper, which reports that most are now negotiating redundancy packages.
A source told the publication: "Given their decision to step back, an office at Buckingham Palace is no longer needed.
"While the details are still being finalised and efforts are being made to redeploy people within the royal household, unfortunately there will be some redundancies."
Despite being shocked by the decision, Prince Harry's UK staff reportedly respect his decision to relocate to North America.
The royal insider added: "The Duke and Duchess have a small team, less than 15 people. The team are very loyal to the Sussexes and understand and respect the decision they have taken.
"They are all close and supporting each other. The team are busy helping to set their Royal Highnesses up for the future and working on a series of final engagements."
Some of the outgoing staff members started working for Prince Harry long before his marriage in 2018.
And according to the insider, they have "experienced some very difficult times of late".
The source added: "They are all good people, very loyal and brilliant at their jobs, and everyone feels incredibly sorry for them."
Prince Harry and Duchess Meghan are set to drop their HRH titles, after opting to step back as senior members of the royal family.
The couple - who are parents to a nine-month-old son called Archie - will no longer be referred to as Royal Highnesses and will be "required to step back from royal duties".