By Alex Blair
Publication Date: 2026-05-19 07:04:00
New Zealand has embarked on one of the most aggressive public sector restructurings in the developed world this year, announcing plans to cut nearly 9,000 government jobs by 2029.
The coalition government says the reforms will save about 2.4 billion New Zealand dollars (1.97 billion Australian dollars) over the next three years and reduce the size of public services by about 14 percent. There are currently just over 63,000 full-time public employees nationwide, down slightly from the recent peak of about 65,000.
MORE: 6 Essential Workplace Skills in the Age of AI
Supporters of the cuts say the announcement reflects growing frustration in Western economies with growing bureaucracies, falling productivity and governments that seem to thrive regardless of the economy.
Oliver Hartwich, chief executive of the New Zealand Initiative, told Radio New Zealand that the government was finally faced with a public sector that was far too sprawling.
“The content of the announcement is…