The plan involves reducing the department's facilities and offices around the world from today's 734 to 602, according to documents obtained by AP. It is unclear whether any embassies will be closed.
"These comprehensive changes will give our talented diplomats the opportunity to put America and Americans first," Rubio writes on X.
"Battle between superpowers"
In a separate statement, Rubio says the US should sharpen its "fundamental diplomatic mission in a new era of battle between superpowers".
The restructuring involves the creation of a new department to handle the remaining aid programs since the aid organization USAID was shut down.
The departments dealing with issues such as women's rights, diversity, and inclusion are expected to be scrapped, in line with President Donald Trump's overall agenda.
The reorganization also eliminates a function that handles war crimes and has recently documented Russia's atrocities in Ukraine.
Eroding influence
Critics are worried that the cost-cutting measures will erode the US's influence in the world and the country's ability to achieve security policy goals, save lives, and spread democracy.
These have always been commitments across party lines, for good reason. They make America safer, stronger, and more prosperous. Now they are in danger, says Democratic Senator Brian Schatz.
It is unclear whether the cuts will be implemented through a presidential order from Trump or otherwise.
The plan is less drastic than a draft that AP reported on a week ago, which involved nearly halving the budget and withdrawing funds from the UN and NATO.