National

New Zealand plans 14% cut to public service jobs to save NZ$2.4 billion

New Zealand's Finance Minister Nicola Willis speaks to the media as she gives an economic update, at Parliament in Wellington, New Zealand April 23, 2026. REUTERS/Lucy Craymer
New Zealand's Finance Minister Nicola Willis speaks to the media as she gives an economic update, at Parliament in Wellington, New Zealand April 23, 2026. REUTERS/Lucy Craymer Reuters

WELLINGTON - New Zealand's Finance Minister Nicola Willis said on Tuesday the government plans to cut public service jobs by nearly 14% and merge departments to save NZ$2.4 billion ($1.41 billion) over the next four years.

"Every dollar saved through fixing duplication and inefficiency is a dollar that can be redirected toward improving productivity, supporting growth, and improving New Zealand's long-term economic resilience," Willis said. ($1=1.70 New Zealand dollars)

(Reporting by Lucy Craymer and Renju Jose; Editing by Neil Fullick)

Copyright Reuters or USA Today Network via Reuters Connect.

This story was originally published May 18, 2026 at 6:09 PM.

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