Mass job cuts begin in the NSW public sector, Australia’s biggest employer

The country’s largest workplace, which has an enormous headcount of 450,000, is kicking off a series of mass job cuts that will impact thousands.

Hundreds of government jobs in New South Wales are set to be slashed, in the first of several expected restructures of the state’s bloated public service.

The NSW Government is Australia’s largest employer, with a headcount of 453,210 as of 2023.

A tenth of people in NSW are employed in some capacity by the government.

Now, amid a budgetary crisis, an enormous inherited debt and long-term economic uncertainty, the government is preparing to kick-off a raft of measures aimed at trimming the public service.

Service NSW, the mega department responsible for everything from car registration and births, deaths and marriages to natural disaster emergency assistance, is the first to undergo a major restructure that will slash its staggering headcount.

Hundreds of staff are set to exit the enormous Service NSW. Picture: NCA NewsWire / Damian Shaw

The “revised organisation structure” is necessary after “several years of significant short-term growth, largely to support the COVID-19 pandemic response”, a spokesperson for Minister for Customer Service and Digital Government Jihad Dib. said.

About 4950 staff are currently employed by Service NSW – almost double the number just before the Covid pandemic in mid-2019.

“This is not sustainable,” the spokesperson said.

The Department of Customer Service did not respond to a request for comment, including questions about how many roles are being targeted for redundancy.

However, news.com.au understands hundreds of staff are expected to leave as a result of the restructure.

“The Service NSW changes will predominantly impact contractors, temporary employees and staff through natural attrition, including those brought on to help with COVID-19 stimulus programs which are now completed,” Mr Dib’s spokesperson said.

“Many of the programs developed in response to the pandemic and natural disasters no longer require this intensive crisis support.

“The reduction in staff will include senior executives … final numbers will be determined in consultation with staff and unions.”

Labor campaigned on a platform of streamlining the enormous public sector. Picture:NewsWire/ Monique Harmer

Jihad Dib insists the customer experience won’t be impacted by the restructure. Picture: NewsWire / Nikki Short

During the last state election, Labor campaigned on a platform of efficiencies, including slashing the number of senior executive roles across all departments by a total of 15 per cent.

It also pledged to take a knife to costly recruitment agency contractor roles in the public service, reducing that headcount by a total of 25 per cent.

However, news.com.au understands media reports claiming a quarter of the Service NSW workforce will be axed, equating to some 1200 roles, are not accurate. Instead, the misreported 25 per cent figure relates to the original agency contractor commitment.

According to 7News, Service NSW chief executive Greg Wells told staff in an address last week that some divisions would see headcount cut by up to 60 per cent.

News.com.au understands there is growing discontent among the Service NSW workforce over the uncertainty created by a lack of information about which roles are likely to be impacted.

The Department of Customer Service did not respond to queries about the adequacy of its internal communications efforts.

The size of the Service NSW workforce almost doubled in four years. Picture: NCA NewsWire / Christian Gilles

The government insists the restructure won’t impact the customer experience.

“There will be no reduction to the current number of 117 Service NSW customer service centres through this process, with an additional centre opening in Tallawong this year to provide an extra option for people living in Sydney’s northwest,” Mr Dib’s spokesperson said.

“There will be a focus on maintaining existing face-to-face customer services, while the Service NSW app is also being uplifted as part of the NSW Government’s investment in the Digital ID program.

“We are also making an additional 80 licenses available through the online Service NSW system to make it faster and easier for people to apply.”

The restructure within Service NSW will be the first of many cost-cutting measures that will involve scaling back headcounts.

The number of full-time roles in the NSW public sector last year increased by 4.7 per cent compared to 2022, with an additional 17,265 people hired in just 12 months.

The median salary paid is $95,984.

Mr Dib’s spokesperson said: “Given the size of the deficit left to us by the former government, it is essential that we continue to be responsible with taxpayer money.”