New Zealand’s Finance Minister Nicola Willis announced on Tuesday that the government will eliminate nearly 9,000 public sector positions – about 14% of the workforce – by mid‑2029. the cuts are part of a broader effort to save NZ$2.4 billion over three years, shrink the number of departments and push faster adoption of AI across government services.

9,000 jobs targeted,14% of the public workforce

Willis told a business audience in Auckland that the plan will bring the public service headcount down to roughly 55,000, a reduction of 8,700 from the December 2025 figure. she emphasized that the current level – 1% of New Zealand’s 5.3 million people – is “unsustainable, unaffordable and out of step with international trends.”

Three‑year budget squeeze aims to save NZ$2.4 bn

The minister outlined three consecutive years of budget cuts for most agencies, which she said will collectively shave NZ$2.4 billion from government spending.. While the exact number of departments to be merged or eliminated was not disclosed,the goal is to reduce the current 39 entities to a smaller, more streamlined structure.

Exemptions for military, teachers and doctors

According to Willis, the defence forces, education staff and health professionals will be shielded from the layoffs. this selective protection reflects the political sensitivity of cutting jobs in sectors that directly affect national security and public welfare.

AI push tied to cost‑cutting agenda

Willis also called for a “fater uptake of AI technology” across the public sector, positioning automation as a tool to offset staffing reductions. The minister’s remarks suggest that digital transfomration will be a cornerstone of the austerity plan, though details on implementation remain vague.

Who will bear the brunt? Unanswered details on redeployment

The announcement left several specifics unclear: which agencies will see the deepest cuts, how displaced workers will be retrained or redeployed, and the timeline for department consolidation. As the plan rolls out, staakeholders will be watching for concrete rollout schedules and support measures for affected employees.