Reserve Bank of New Zealand proposes cutting roughly a fifth of its workforce

New Zealand's central bank said on Monday it was proposing cutting roughly a fifth of its workforce to save costs after the government reduced its operating budget.

A Reserve Bank of New Zealand spokesperson said in an email it was planning to cut a net 142 positions, including 32 currently vacant positions. In January, the bank employed 660 people.

It said is currently progressing through "the final phase of a structure design and implementation process" but it expected to have finalised layoffs by October 13.

"We recognise that this is an uncertain time for our people and are committed to handling this process with care and consideration," the spokesperson said.

In April, the bank said it expected to review staffing levels and other costs after the government announced its operating budget would be cut by roughly 25% in the current fiscal year.

The conservative government has implemented significant cuts across the public sector since it was elected at the end of 2023, as part of its drive to return the government's accounts to surplus.

A cabinet paper released alongside the government's April announcement said the Treasury had reviewed the central bank's funding request of NZ$1.03 billion ($613.37 million) for the five year period and found it "did not provide good value for money."

($1 = 1.6793 New Zealand dollars)