Another 950 jobs to be slashed from NSW Transport department

About 950 white-collar jobs will be slashed from NSW’s transport department over the next six months as part of cost-cutting forecast to strip $600 million from the agency this financial year.

Transport for NSW secretary Josh Murray revealed the extent of the latest job cuts in an internal staff memo on Wednesday morning. They are part of changes to the agency’s “operating model and financial sustainability”.

He acknowledged that the job cuts were significant and would be “concerning news for many people”, while unions argued that the large number of redundancies would inevitably have “some frontline impact”.

About 950 jobs will be cut from Transport for NSW.Credit: Oscar Colman

The 950 jobs to be slashed from Transport for NSW comprise both award roles and senior managers, and will include back-office jobs from administration, technology and communications.

Murray said he intended to minimise the impact on frontline employees and staff in regional areas as “much as possible”.

The latest job cuts are in addition to previously announced cuts of 300 senior executive roles, of which more than 200 have already been made.

Transport for NSW secretary Josh Murray.Credit: Louie Douvis

Transport for NSW is forecasting that about $600 million will be saved this financial year from the latest round of redundancies, as well as from cuts to consultants and contractors.

The job cuts are expected to be completed by the end of the year, and follow a financial expenditure review commissioned by the Minns government after the 2023 state election. The government’s election commitment was to reduce public-sector executive roles by 15 per cent.

Transport for NSW has about 15,000 staff, while about a further 15,000 people are employed at other transport agencies such as Sydney Trains, NSW TrainLink and Sydney Metro. The announced job cuts are not at the latter agencies, although they have their own reviews under way.

Rail, Tram and Bus Union state secretary Toby Warnes said it was nigh on impossible to axe almost 1000 jobs from an agency charged with overseeing the transport network without “some frontline impact”.

“Thousands of Transport for NSW workers and their families are now all facing the shocking realisation that it could be their job on the chopping block. Behind every significant change like this are real people, real families, and real futures being thrown into doubt,” he said.

Unions were briefed on the job cuts on Wednesday morning.

In his internal memo, Murray said that centralising parts of Transport for NSW such as communication, procurement, project support, business support and technology was key to the agency’s “new statewide model”.

“In the last five years, Transport for NSW underwent a significant period of growth – with a 30 per cent increase in the [transport senior service manager] and award cohort combined. This largely occurred during and after the COVID period, with 3000 extra staff appointed,” he said in the internal memo.

“We have to get back to a model that is sustainable for the long term. That also means reducing duplication, removing unclear reporting lines, and ensuring all our people are clear on what’s expected of them.”

Coalition transport spokeswoman Natalie Ward described the job cuts as “brutal” and argued they were made to pay for recent union wage deals.

“The people being sacked are not senior bureaucrats – they’re the engine room of the department, and their mistake was not joining the RTBU,” she said. “These decisions send a clear message: under Labor, it’s union first, commuters second.”

Murray later told reporters that the recent pay deal with thousands of rail workers, which will result in them receiving a 16 per cent pay rise over four years, was “completely unrelated” to the latest decision to shed 950 jobs at Transport for NSW. “I know the timing is close together, but actually, these processes are very far apart,” he said.

Transport Minister John Graham said Labor promised to prioritise frontline services, and the latest changes were “part of that funding rebalance”.

Start the day with a summary of the day’s most important and interesting stories, analysis and insights. Sign up for our Morning Edition newsletter.