Twelve part-time nursing staff are being made redundant in the first stage of restructuring of Hawke's Bay's only hospice.
Cranford Hospice in Hastings provides palliative care for about 150 people in the community at any one time.
The Hawke's Bay District Health Board provides 70% of the funding.
In April an independent audit of the hospice, which is run by Presbyterian Support, found the working environment was unsustainable and there was a dysfunctional relationship between staff.
One criticism was that more than 60% of the hospice nursing staff worked part-time.
DHB chief executive Kevin Snee says that, following a review, there's now a new team of 15 registered nurses, three enrolled nurses and two care associates.
Twelve people who applied for jobs weren't successful and will be offered redundancy.