The cabinet backed the proposed reforms on Sunday, which still needs parliamentary approval.
The six posts under threat represented various political and sectarian blocs in the government.
The plan also effectively would push out of government former Prime Minister Nouri al-Maliki, widely criticised for inflaming sectarian tensions and appointing loyal, less-qualified senior officers to Iraq's military ahead of the Islamic State of Iraq and the Levant (ISIL) group's advance last year.
However, al-Maliki issued a short statement backing the proposed plan.
The proposal followed weeks of demonstrations, and a call for tougher reform measures from top Shia cleric Grand Ayatollah Ali al-Sistani, who is revered by millions of Iraqis.
Political shockwaves
On Sunday evening, Kurdistan's regional government welcomed the decision and vowed reforms, as long as the central government is "mindful of the participation of the Kurdistan Region".
a statement issued earlier on Sunday, Abbadi also promised to investigate corruption, reappoint all senior officials based on professional rather than sectarian standards, and reduce the number of security personnel protecting senior officials in order to cut down on waste.
Abbadi held a meeting on Friday evening with a number of experts and advisers to discuss the administrative and financial reforms in his new bid to tackle corruption in the country.
Iraq's Deputy Prime Minister Bahaa al-Araji resigned shortly after Abbadi's proposal on Sunday, Iraq's state news reported.
Anti-government demonstrations persisted in several cities such as Basra, Baghdad, Nasriyah and Najaf in the past two weeks over poor living conditions, including electricity cuts and water quality.
Abbadi's decision today sent shockwaves throughout the Iraqi government establishment.
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