New Zealand flags 8700 job cuts in tight pre-election budget
Finance Minister Nicola Willis plans to cut 8,700 public service jobs by 2029. This move aims to reduce debt and inflation before the November election.
New Zealand will cut 8,700 public service jobs by mid-2029 to reduce debt and curb inflation. Finance Minister Nicola Willis announced the plan on Tuesday to lower the core public workforce to 55,000 employees. The move aims to stabilize the economy before a contested November election.
### Fiscal Restraint to Combat Debt Downgrades The government is capping new operating spending at NZ$2.1 billion for the 2026-27 year, NZ$300 million lower than December forecasts. Prime Minister Christopher Luxon faces pressure after being forced to call a confidence vote last month amid an economic slump, which prompted Fitch and Moody's to lower the national outlook to negative in March and April. Willis said the government must avoid a failed spend-up to maintain economic credibility.
