Netherlands plans 25,000 job cuts, partly through AI

What did the government announce?

The Dutch cabinet said on Monday it wants a government that is "simpler, smarter and smaller" (Rijksoverheid). The target is 900 million euros in savings in 2027, rising to 3.5 billion euros a year from 2035. It estimates this means cutting about 25,000 full-time jobs over several years. Police and defence are excluded.

Where does AI come in?

In the first quarter of 2027 the cabinet will set goals and savings plans for using AI to work more productively, so the details are still missing. State secretary Eric van der Burg wants to apply AI even more broadly, Bloomberg reported, after several AI initiatives were already set up across government (Engadget).

The package goes beyond AI. The government wants to scrap at least 500 rules a year, give citizens a single point of contact and create a legal basis for data sharing between agencies within two years. It also plans one workstation per two employees, fewer of its 28 advisory councils and roughly 150 committees, and fewer of the about 400 evaluations it runs each year.

Why it matters

This is one of the first European governments to name AI openly as a tool for shrinking its workforce. Engadget calculates the cut at about 16 percent of the Dutch central government workforce. It will be worth watching how this fits with the EU AI Act's rules for the public sector, especially if AI starts playing a role in decisions that affect citizens.