Regional economic development boards in this province will not have their federal funding renewed beyond May 2013.
There are 20 economic zones represented by boards in Newfoundland and Labrador.
The organization works with funding partners, stakeholders and communities on economic development initiatives directed toward sustainable development.
As with all boards, the core operational funding is 75 per cent federal and 25 per cent provincial.
Along with regional development authorities in Nova Scotia, community economic development agencies in New Brunswick and community economic development organizations in Prince Edward Island, they were notified of the cut by letter from the Atlantic Canada Opportunities Agency (ACOA) Minister Bernard Valcourt.
The minister said ACOA will continue to support business and communities on new opportunities for economic development and diversification.
They will also keep working with partners to address challenges facing small, rural and remote communities in Atlantic Canada.
"The decision to withdraw federal core funding from these organizations is about reducing duplication and focusing ACOA's efforts and strategies on providing businesses across Atlantic Canada with the tools and resources they need to create jobs and growth in our communities," the letter said.
"Simplifying and clarifying the support system for entrepreneurs will be beneficial to Atlantic Canada."