Netherlands to Cut 25,000 Public Sector Jobs Using AI by 2035
The Dutch government plans to cut 25,000 public sector jobs by 2035, saving 3.5 billion euros by integrating artificial intelligence and reducing bureaucracy.
Artificial intelligence is reshaping the global labor market, a trend that began in the tech sector where smart automation tools streamline development, marketing, and management tasks. As technology companies demonstrate that peak output can be achieved with leaner teams, this wave is now spreading beyond the private sector into public service mechanisms that must adapt to an era of algorithm-driven efficiency.
The Dutch government is launching a sweeping efficiency overhaul centered on artificial intelligence and bureaucratic reduction. By 2035, approximately 25,000 public sector jobs—about 16 percent of total government personnel—will be gradually cut to save around 3.5 billion euros (3.9 billion dollars). The initial phase is expected to yield savings of 900 million euros (roughly 1 billion dollars) by as early as 2027.
Targeting Bureaucracy and Boosting Productivity
The plan, presented by Eric van der Burg, State Secretary for Kingdom Relations and Digitalisation, sets a target of a 20 percent surge in labor productivity. This will be achieved primarily through automation and the deployment of AI tools designed to handle heavy workloads despite a smaller workforce. "We cannot continue to operate as we have in the past," van der Burg emphasized. "We are going to make sharp decisions to create a central government that truly works: simpler, smarter, and smaller."
Beyond technology, the initiative includes a direct assault on bureaucratic red tape. The government has committed to abolishing or simplifying at least 500 rules and regulations annually. Complementary efficiency measures will involve transitioning to a shared workstation model with two employees per desk, selling off surplus real estate properties and buildings, and consolidating government IT systems.
Exemptions for Security and Advisory Overhaul
Police and security forces have been completely exempted from the cuts. In contrast, the government advisory apparatus will undergo significant review and reduction. Currently, the Netherlands operates 28 permanent advisory councils alongside roughly 150 advisory committees, with new targets for downsizing expected later this year. According to media reports, a series of voluntary AI-driven productivity initiatives have already been approved to accelerate the implementation of these cuts.
The initiative comes amid an unprecedented expansion of the public sector. By the end of 2025, the central government employed a record 160,000 workers, representing a 41 percent surge compared to 2018. The current plan aims to curb this expansion trend and restrain long-term state expenditures by focusing cuts heavily on headquarters, regulatory bodies, and routine administrative departments.
