The Dutch government plans to cut an estimated 25,000 full-time jobs in central government, it said in a statement on Monday. The cuts are spread over several years. They should save €900m in 2027, rising to €3.5bn a year from 2035.
The cuts do not cover all Dutch government jobs. Police and defence are among the areas exempt, and the cuts will not fall equally everywhere. In the first quarter of 2027, the cabinet will set out goals and savings plans for using AI.
“We cannot keep doing what we did. … That is why we are going to make sharp choices for a central government that really works: simpler, smarter and smaller,” Eric van der Burg, state secretary for Kingdom Relations and Effective Government, said in the statement.
Bloomberg reported that the number of central government officials hit a record 160,000 at the end of 2025. That was 41% more than in 2018, even though earlier cabinets had pledged to bring the number down.
Where the cuts land
Ministries, inspectorates and the agencies that carry out policy will be hit hardest, Bloomberg reported. It cited a letter Van der Burg sent to parliament. Some departments there could see their staff cut by 45% or even 60%.
The plan also targets red tape. The government has already said it will scrap or simplify at least 500 rules a year. It will reduce its 28 permanent advisory councils and about 150 advisory committees, with targets due later this year. It also wants far fewer of the roughly 400 policy evaluations it runs each year.
Staff will share desks, with one workplace for every two employees. Surplus buildings will be sold, IT systems standardised and facilities at ministries scaled back. Departments will buy together more often, with fewer requirements. The details of the cuts will follow in the spring memorandum, the government’s mid-year budget update.
The role of AI
Van der Burg pointed to non-binding motions passed by parliament, according to Bloomberg. They call on the cabinet to raise government productivity by 20% through AI. AI projects have already started in several parts of the government, and the aim is to use AI more widely.
The government also wants to work with Dutch and European suppliers where it can, Bloomberg reported. The aim is to avoid depending on technology from outside Europe. The Dutch tax office is already dropping the Microsoft 365 cloud for its own servers and open source. The government is also building its own Linux desktop.
New Zealand is also cutting public service jobs with AI in mind. It plans to cut 8,700 core public service roles by 2029, leaving 55,000, RNZ reported. Its report draws on 16 government documents released to it.
“It will mean a much [more] aggressive/targeted approach to AI,” Public Service Commissioner Sir Brian Roche told ministers of the 55,000 target.
Officials had warned ministers that cuts that deep could put performance at risk, according to the documents. They did not model how many jobs AI might replace or what the rollout would cost. Some commentators have warned that AI developers will likely raise token and licensing prices once competition thins out, RNZ reported.
In the private sector, Barclays expects about 5,000 job cuts this year, as AI makes the bank more efficient.
The Dutch cabinet’s AI goals and savings plans are due in the first quarter of 2027. Within six months, it will also present a multi-year approach for the central government, including proposals from a committee on its future.