Netherlands to Cut 25,000 Government Jobs With the Help of Artificial Intelligence to Save €3.5 Billion

The Netherlands has announced an ambitious public administration reform plan that could eliminate approximately 25,000 full-time equivalent positions across the central government by 2035. 

The Dutch government intends to use artificial intelligence (AI), digitalization and administrative simplification to reduce public spending and create a smaller, more efficient government.

The initial target is to save €900 million in 2027, with annual savings expected to increase progressively to €3.5 billion by 2035, according to the official plan presented on October 26 by State Secretary for Kingdom Relations and Effective Government Eric van der Burg.

The reform represents a significant shift in the Dutch public administration model following years of workforce expansion and rising government operating costs.

Dutch government turns to artificial intelligence to reduce its workforce

The transformation of public administration will rely partly on the introduction of artificial intelligence technologies designed to automate certain tasks, improve productivity and reduce staffing requirements.

The government believes that some existing administrative processes could be carried out with fewer employees by making better use of digital tools and reorganizing public institutions.

During the first quarter of 2027, the government plans to present detailed objectives and cost-saving measures related to the implementation of artificial intelligence.

However, the planned reduction of 25,000 positions is not exclusively attributed to AI. It will also depend on simplifying regulations, reorganizing services and eliminating certain administrative functions.

State Secretary Eric van der Burg has defended the need for comprehensive public sector reform.

“We cannot continue doing things the way we used to. With too many rules, exceptions and procedures, we sometimes make solving problems unnecessarily complicated,” he said.

The government official also emphasized the importance of making difficult decisions to establish a more effective administration.

“We are going to make tough decisions to achieve a central government that truly works: simpler, smarter and smaller,” he stated.

Government workforce could shrink by nearly 16%

At the end of 2025, the Dutch central government employed approximately 160,000 full-time equivalent workers, representing a 41% increase compared with 2018.

The government believes this expansion has been accompanied by growing administrative complexity, additional regulations, supervisory bodies and bureaucratic procedures.

The proposed reduction of 25,000 positions would represent approximately 16% of the current central government workforce.

However, the cuts will not affect every government department equally.

Some institutions will face more substantial reductions, while others will be protected because of the essential nature of their responsibilities.

Among the announced exceptions are the police and defense sectors, which will be excluded from the general workforce reduction program.

The government has not yet specified how many positions will be eliminated within each ministry or public institution. These details will be determined during the next stages of the reform.

Fewer offices, fewer advisers and one desk for every two employees

The administrative restructuring will extend beyond workforce reductions.

The Dutch government also intends to lower operating expenses across ministries and public agencies by improving the use of office buildings, information technology systems and other resources.

One of the most notable proposals is to establish one physical workstation for every two public employees, reflecting the expansion of remote working arrangements and more flexible workplace models.

This measure could allow the government to reduce the amount of office space it requires and sell buildings that are no longer necessary.

Authorities also plan to standardize IT systems and centralize certain public procurement processes to secure better financial conditions.

At the same time, the government wants to reduce the number of advisory bodies involved in developing and overseeing public policies.

The central administration currently has 28 permanent advisory councils and approximately 150 advisory committees, structures that the government believes could be streamlined.

The number of public policy evaluations, currently estimated at around 400 annually, is also expected to decrease.

Netherlands plans to eliminate or simplify 500 regulations every year

Another major pillar of the reform is the reduction of bureaucracy.

The Dutch government has committed to eliminating or simplifying at least 500 regulations annually, with the aim of making administrative procedures easier for citizens, professionals and businesses.

The initiative seeks to reduce the time and financial resources spent complying with unnecessary regulatory requirements.

The government is also preparing legislation designed to simplify existing regulations and limit the introduction of additional administrative obligations.

One proposal under consideration would require ministries to periodically demonstrate that certain regulations remain necessary.

If their continued relevance cannot be justified, those regulations could be considered for elimination.

The reform also aims to improve secure information sharing between government agencies so that citizens are not repeatedly required to provide information already held by public authorities.

Artificial intelligence raises questions about the future of civil servants in Europe

The Dutch decision highlights the potential of artificial intelligence to transform public administration across Europe.

AI-powered automation tools can assist with document processing, public inquiries, information analysis and other tasks that currently require substantial employee involvement.

Nevertheless, the government has not yet established how many of the 25,000 planned job reductions will result directly from the introduction of artificial intelligence.

The initiative also raises questions about maintaining the quality of public services, protecting personal data and ensuring human oversight of automated administrative decisions.

The challenge for the Dutch government will be demonstrating that it can reduce bureaucracy and operating costs without compromising the quality of services provided to citizens.

The plan could also attract attention from other European countries seeking to modernize public administration while controlling government expenditure.

Annual savings expected to reach €3.5 billion by 2035

The announced strategy establishes a gradual transformation of the Dutch central government over the coming years.

The first major financial target is scheduled for 2027, when the government expects to achieve €900 million in savings through reductions in central government operating costs.

Subsequently, organizational restructuring, digitalization and workforce reductions are expected to increase annual savings to €3.5 billion by 2035.

The government will present further implementation details in 2027, including the expected contribution of artificial intelligence to productivity improvements.