The measures are part of the government's austerity plan to help Egypt's ailing economy recover from a huge deficit that exceeded the $33.7 billion mark this fiscal year.
Foreign Ministry spokesman Ahmed Abu Zeid explained that 20 administrative attachés and 20 diplomatic members were withdrawn as part of a government austerity plan.
Abu Zeid said in a statement that the number of supporting professionals at Egypt's foreign mission would also be scaled down.
He added that the Egyptian embassy in Bangui, the Central African Republic has been closed, as well as the country's consulates in Zanzibar, Lagos and Geneva.
The number of Egyptian diplomats in 129 countries is now stands at 500, Abu Zeid said.
Restrictions have also been placed on what can be purchsed by Egypt's foreign diplomatic missions.
The foreign ministry's announcement follows a statement from cabinet spokesman Hossam Kaweesh earlier this month which revealed the ministerial economic committee had decided to cut the external representation in diplomatic missions by half.
Egypt is suffering an acute foreign currency shortage because of the decimation of its lucrative tourism industry, a fall in Suez Canal revenues and reduced remittances from Egyptian expatriates.
It also suffers from double-digit rates of inflation and unemployment.
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