Premier Ben Carroll on Monday announced the size of the state government's cabinet would shrink from 22 ministers to 20, following the departure of former Labor leader Jacinta Allan and two of her allies.
Mordialloc MP Tim Richardson has been elevated to the ministry, but the other two spots will not be filled.
Mr Carroll said he was slimming down the ministry as a demonstration of his commitment to not wasting taxpayer funding.
"It doesn't pass the pub test getting multiple ministers signed in 12 weeks out before a campaign begins," the premier told reporters.
"Every dollar should be spent wisely, considerately, and where it delivers the best value for money."
Shedding two ministers for the rest of the parliamentary term will save taxpayers up to $102,000 in additional salary and payable expense allowances, AAP analysis shows.
A cabinet reshuffle is expected to be announced on Tuesday following the allocation of portfolios.
Mr Carroll refused to say whether Labor would permanently run with a reduced cabinet, should the party win the November state election.
A three-term MP who has served as cabinet secretary since April, Mr Richardson said it was a tremendous honour to be elevated to cabinet.
Overlooked for a place on the frontbench at the last reshuffle in April, the former parliamentary secretary for men's behaviour change said he would serve wherever the premier chooses.
The changes to cabinet follow Ms Allan's resignation on July 28 after a leadership revolt.
Mr Carroll, from the party's smaller right faction, was elected premier and Transport Infrastructure Gabrielle Williams installed as his deputy.
Health Minister Harriet Shing and Energy Minister Lily D'Ambrosio stepped down from cabinet on Thursday and announced they would not recontest their seats at the November election.
The pair were from Ms Allan's socialist left faction, which has dominated the Victorian parliamentary party for years.
Mr Carroll is the first leader from Labor's right faction since John Brumby, who was premier from 2007 to 2010.
The upheaval within Victorian Labor comes less than four months before the state's voters head to the polls.
Since seizing the leadership, Mr Carroll has committed to creating a royal commission to address allegations of construction sector corruption.
In a report into the Victorian arm of the CFMEU, corruption-busting lawyer Geoffrey Watson SC estimated taxpayers lost $15 billion due to dodgy deals connected to state government construction projects.
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