Two of the three executive directors in the directorate are gone - Phillip Perram, executive director of parks and territory services, and Kim Smith, executive director of corporate and business enterprises. The director of governance is also gone.

The government had planned to set up a new transport agency, merging Capital Metro, which is delivering Canberra's light rail project, and ACTION buses. But in April, it abandoned that plan, instead merging Capital Metro with TAMS to establish a new Transport Canberra and City Services directorate, from July 1 this year.

Capital Metro head Emma Thomas is to be director-general of the new body.

Acting director-general of Territories and Municipal Services Ben Ponton confirmed the loss of the positions last night.

"The bringing together of the two agencies – Capital Metro and Territory and Municipal Services – not unexpectedly impacted on the executive structure," he said. "The unions have been consulted as part of the process and staff informed of the new structure. There are no overall job losses as a result of the amalgamation. There will be no change to the frontline services that the Canberra community relies on every day."

Liberal deputy leader Alistair Coe said the job losses were "the first step of [Territories Minister Meegan] Fitzharris imploding her own directorate in order to make way for a takeover by Capital Metro.

"We all know that TAMS is being squeezed of resources so that every dollar can go towards light rail ...

"The bureaucratic mess caused by this government is purely of its making and is being exacerbated by Ms Fitzharris. There is a distinct lack of confidence in TAMS and other agencies because the chief minister and his inner circle are failing to run a cabinet government with direction and good processes."