The provincial Crown corporation eHealth has cut 45 contract workers, although some will be rehired as regular fulltime employees.
The agency is responsible for Saskatchewan's initiative on electronic health records.
The head of eHealth, Susan Antosh, said Friday the contract cuts were needed because the agency hopes to find savings of about $6 million, in order to stay within its budget. The contracts cut represent about 15 per cent of the total number of people working at the agency.
"There will be some impact there's no doubt," Antosh told CBC News. "But we've tried to look very carefully and disperse it in a way that we have coverage."
It was not immediately known how many of the contract employees who were axed would return as staff or when new positions would be created.
On Friday, the provincial government's job openings site, maintained by the Public Service Commission, showed no listings for current job opportunities at eHealth.