Netherlands plans to cut 25,000 government jobs using AI to reduce costs

Dubai: The Netherlands plans to cut about 25,000 government jobs over the next decade as part of an efficiency drive that will expand the use of artificial intelligence (AI) and seek to save €3.5 billion ($3.9 billion) annually by 2035, according to Bloomberg.

The Dutch government announced on Monday, October 26, that it aims to reduce central government spending by €900 million a year by 2027, with annual savings rising to €3.5 billion from 2035.

The planned reductions, equivalent to about 16 per cent of the central government workforce, will be spread over several years, according to an official government statement.

The cabinet is expected to present detailed plans in the first quarter of 2027 outlining how AI could be used to improve productivity and reduce administrative costs.

Eric van der Burg, the Dutch State Secretary responsible for government efficiency, said the country needed to make difficult decisions to create a smaller, more effective public administration.

"We cannot keep doing what we have been doing," he said, stressing the need to simplify government procedures, improve efficiency and reduce operating costs.

The planned overhaul comes after the number of central government employees reached a record 160,000 at the end of 2025, an increase of 41 per cent compared with 2018, despite previous commitments to reduce the size of the civil service.

The government also plans to simplify or abolish at least 500 regulations annually, standardise IT systems, reduce advisory bodies and make more efficient use of office space.

Police and defence will be exempt from the reductions, while other ministries and government agencies could face varying levels of cuts.

The government has yet to specify how the workforce reductions will be implemented across departments, with further details expected in its upcoming budget plans.