New Zealand's government plans to cut 14% of public sector jobs to slash spending

Key points

• New Zealand's government will lay off nearly 9,000 workers, amounting to 14% of public sector jobs, by mid-2029 as part of a bid to slash billions in spending, Finance Minister Nicola Willis said on Tuesday (May 19, 2026).
• Willis said her administration would also enact three consecutive years of budget cuts for most public agencies, “significantly reduce” the number of departments, and demand faster uptake of artificial intelligence (AI) technology across the sector.
• The cutbacks would save 2.4 billion New Zealand dollars (US $1.4 billion) during that period, the Minister told a business audience in New Zealand's biggest city, Auckland.
• Many public servants live and work in the capital city, Wellington.
• Their numbers would be cut to 55,000, a drop of 8,700 from December 2025 figures, Ms.