NSW public sector workers face job cuts in a sweeping state restructure.

Hundreds of positions are being slashed or converted to temporary roles as part of “spill-and-fill” measures across state agencies. 

Service NSW, established by the former Coalition government as a central hub for public services, is among the hardest hit, with 360 jobs targeted for elimination and dozens more shifting to temporary status.

This process has occurred in three stages, driven by what the government calls “several years of significant short-term growth” during COVID-19. 

Staffing at Service NSW surged from 2,860 in June 2019 to 4,950 in June 2024, but this expansion is now deemed “not sustainable”, according to a spokesperson for Customer Service Minister Jihad Dib.

Beyond Service NSW, job losses are widespread across the Department of Customer Service. 

Cyber Security NSW faces eight redundancies, while state insurer iCare plans to cut 236 positions, representing a 7 per cent reduction in its workforce.

The government asserts that many roles marked for cuts are contractor positions, noting a 50 per cent reduction in contractor numbers within the Department of Customer Service. 

Despite these changes, Dib’s office insists that Service NSW's disaster response capabilities will remain intact, ensuring communities are supported during emergencies.

The Minns government, elected on a platform to reduce senior executives in the public sector by 15 per cent, has not confined the cuts to senior roles. Project managers and frontline staff have also been affected, sparking criticism from Coalition customer service spokesman James Griffin, who called the reductions “tragic and shortsighted”. 

He warned that critical public services and disaster relief functions are at risk, saying: “I’m regularly hearing serious concerns from digital industry stakeholders that a decade of innovation by the NSW government is disappearing by the month under the Minns government”.

While the government claims the restructuring is necessary for long-term sustainability, critics argue it could weaken public service delivery, particularly in regional areas. Consultation on the final structure is ongoing, with more announcements expected in the coming months.

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