"Given their decision to step back, an office at Buckingham Palace is no longer needed," a palace aide told ITV.
"While the details are still being finalized and efforts are being made to redeploy people within the royal household, unfortunately, there will be some redundancies."
Last week it was revealed that the pair had jetted out from Canada to Los Angeles, as Prime Minister Justin Trudeau was closing the borders.
The reasons behind their sudden relocation have not been specified, however, a number of reasons for the couple's move have been suggested.
Firstly Meghan grew up in La with her parents Thomas and Doria Markle, both still live in the US.
Meghan is particularly close with her mother, and the move could be an opportunity for her to be near to her once more.
Secondly, it is clear from Meghan's recent Disney Elephant documentary release, that the former actress has not closed the door on acting.
Meghan's showbiz friends including Oprah Winfrey and Ellen Degeneres reside in Los Angeles leading to potential opportunities for collaboration.
Thirdly, there has been claims that Meghan and Harry did not want to pay tax twice on any future earnings.
According to The Sun, Meghan and Harry have moved to Hollywood due to having more opportunities to save money.
As the duchess is a US citizen, if she were to accumulate income while residing in Canada, she would have to pay tax in both the US and Canada.
A source told the newspaper: "Initially Harry and Meghan wanted to be based in a Commonwealth country — Canada — and earn their own money while still performing some royal duties.
"But their plan very quickly fell apart.
"They were told getting work visas in Canada would be difficult and because Meghan remains a US citizen, so is taxed on her worldwide income, she would end up paying in the US and Canada.
"Then the Canadian government made it clear they would not contribute to their security costs so it made much more sense to live in Hollywood and only pay US tax."
Self-employed income that could come from social media or any merchandise sold would have to be reported.
The US Internal Revenue Service would also have to be made aware of any foreign bank accounts that Meghan and Harry posses.
It has been speculated that the Sussexes will seek to make millions of pounds from their brand across the pond going forward.
The couple is officially "out of office", according to an automated email response from their old email account that appeared yesterday, as a new chapter for the Sussex couple now begins in Los Angeles, leaving the royal family firmly behind.
And to make sure this is not forgotten, the pair's automated Buckingham Palace email response reiterated: "Many thanks for your email.
"The office for the Duke and Duchess of Sussex has now closed,"
From April the 1, the pair have officially stepped back from their senior royal roles, as they prepare to be "financially independent."
The staff from their office have been "let go" from their positions, including long term aides made redundant after the shakeup.