Tasmania is making moves to cut nearly 500 jobs from its Department of Health and Ageing (DHA).

Chief Executive of SA Health, David Swan says head office staff numbers will drop from 2,130 to 1,680 in the first stage of a two-part overhaul.

Swan says 25 executive roles and 425 staff have been cut from the head office.

A new division has been set up to bring about the ‘Transforming Health’ reforms, head office functions have been streamlined, and the number of divisions within DHA has reduced from five to three.

DHA’s Finance and Corporate Services Division will now be run by Deputy Chief Executive, Steve Archer, while the System Performance and Service Delivery Division will be led by Deputy Chief Executive Officer, Jenny Richter.

“We've identified 425 finance, revenue and workforce positions which will be transferred from head office to the Local Health Networks to give direct support to hospitals and health sites,” Mr Swan said.

“Twenty-five executive roles will also go. Twelve of these positions will transfer to the Local Health Networks, with the remaining 13 executive positions being abolished.”

“Following the full implementation of stage one of the review, the Department for Health and Ageing will have 27 executives in core Department functions, down from 65 currently.

“For stage two of the review, we'll have a detailed look at the remaining functions within the Department,” he said.

"I'm confident that there are further areas that can be streamlined.”

The reforms have seen the eHealth Systems division incorporated into Finance and Corporate Services, while the Public Health and Clinical Services division is now part of System Performance and Service Delivery.

In a related story, the Tasmanian Government has revealed the size and cost of its broader public service cuts.