Reserve Bank of New Zealand to cut 20% of workforce
What's the story
The Reserve Bank of New Zealand has announced plans to cut its workforce by around 20%. The decision comes as a response to a 25% reduction in its operating budget by the government. A recent Treasury review found that the bank's funding request of NZ$1.03 billion (around $613 million) for the five-year period did not offer good value for money, prompting this drastic measure.
Information
Bank to cut a net of 142 positions
The central bank, which employed 660 people in January, plans to cut a net of 142 positions. This includes 32 currently vacant roles. The bank is now in "the final phase of a structure design and implementation process" and expects to finalize these layoffs by October 13.
Acknowledgment
Decision to review staffing levels was announced in April
The Reserve Bank of New Zealand has acknowledged the uncertainty its employees are facing amid this process. A spokesperson for the bank said they are "committed to handling this process with care and consideration." The decision to review staffing levels and other costs was first announced in April when the government revealed its plan to cut the operating budget by around 25% for the current fiscal year.
Government influence
Conservative government's push for public sector cuts
The conservative government of New Zealand has been making major cuts across the public sector since it came to power at the end of 2023. These measures are part of its strategy to bring the government's accounts back into surplus. A cabinet paper released with the April announcement said that the Treasury had reviewed a five-year funding request from the central bank and found it "did not provide good value for money."