The Port Authority of New York and New Jersey is cutting 150 positions and slashing overtime.
The moves are part of the Port Authority's $6.3 billion budget for 2010. The agency's board of commissioners approved the budget Thursday.
The agency also plans to hire fewer consultants to save money in a tough economic climate.
A spokeswoman says the job reductions were achieved through attrition, a voluntary severance program and leaving vacant positions empty.
The agency says its 2010 staff of 6,977 people is a 40-year low.
The Port Authority's chairman said the agency was forced to make difficult choices but had to live within its means.