White House budget chief Mick Mulvaney will this week send a memo to federal agencies instructing them to prepare for future cuts to funding and staff, according to a new report.

The guidance letter, Axios reported on Sunday, was set forth by the executive order President Trump signed last month for “reorganizing the executive branch.”

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The order calls to “improve the efficiency, effectiveness, and accountability of the executive branch by directing the Director of the Office of Management and Budget to propose a plan to reorganize governmental functions and eliminate unnecessary agencies, components of agencies and agency programs.”

The federal agencies will likely plan to lay off staff, eliminate programs and sell real estate, according to the report. Some agencies could shutter or consolidate.

Axios reported a final proposal of the federal cuts could take until next year.