In a significant shake-up, the New South Wales (NSW) government, Australia’s largest employer with a workforce of 450,000, is set to initiate mass job cuts affecting thousands of employees. This drastic move comes amid a budgetary crisis, inherited debt, and long-term economic uncertainties, as reported by news.com.au.

Greg Wells, the CEO of Service NSW, informed staff this week that jobs across most divisions would be reduced by up to 60%. Service NSW is a government department responsible for a wide range of services, including car registration, birth, death, and marriage registrations, and natural disaster emergency assistance. 

An anonymous employee speaking to 7NEWS.com.au revealed that the government aims to cut 25% of Service NSW staff. The job cuts, driven by financial strain, will primarily affect contractors, temporary workers, and other staff, with a focus on reducing the workforce in customer support, service delivery, partnerships and projects, and cyber security.

The NSW government has publicly acknowledged its intention to slash Service NSW staff numbers as part of a broader effort to manage the state’s financial difficulties. This initiative follows a pledge by NSW Premier Chris Minns ahead of the 2023 state election to reduce the public service by cutting 15% of senior executives and imposing a two-year pay freeze on those remaining.

In June 2024, the NSW government announced the establishment of a new unit within the Premier’s Department aimed at reducing the reliance on external consultants. 

This unit will redirect agencies to in-house specialist resources and build in-house capabilities for services with high demand. The move is expected to address skills shortages and workforce gaps, ensuring the delivery of essential services across the state.

This decision comes in response to an analysis by the NSW Auditor-General, which revealed that the previous Liberal-National Government had issued more than 10,000 contracts to consultants over their last five years in office, spending over AUD 1 billion (USD 674,765,000) on external consultants. The Auditor-General criticized the inadequate procurement and management policies in place during that period.

The announcement has sparked concern and frustration among Service NSW staff. According to the Daily Mail, employees are struggling to cope with the workload amidst the looming job cuts. “How are we supposed to do our job properly when we hang by a thread?” one staff member lamented. The reduction in staff numbers is expected to place additional pressure on the remaining workforce, potentially affecting service delivery and customer support.

To mitigate the impact of the job cuts, Service NSW plans to enhance its online services. This shift towards digital solutions aims to maintain support for customers despite the reduced workforce. However, the extent to which this will offset the loss of personnel remains to be seen.

The mass job cuts at Service NSW reflect broader challenges facing the NSW government as it grapples with economic pressures and a need to streamline operations. The establishment of the new unit within the Premier’s Department signals a strategic shift towards building internal capabilities and reducing dependency on costly external consultants. This move is expected to foster greater efficiency and accountability in the delivery of public services.

As the NSW government navigates these changes, the focus will be on balancing financial sustainability with the need to maintain high-quality services for the public. The impact on employees, particularly those affected by the job cuts, will be a critical factor in the success of this transition.