‘Shortsighted’: NSW government blasted as hundreds of jobs cut

Hundreds of NSW public sector workers are being sacked or moved into temporary roles as part of a broader re-shaping of the state’s bureaucracy. There will be significant job culls taking place across agencies following so-called “spill-and-fill” restructures.

The cuts have been particularly severe at Service NSW, the agency set up by the former Coalition government as a one-stop shop for government services. Some 360 jobs have been earmarked for cuts. Dozens more will switch from ongoing roles to temporary ones.

Service NSW, the agency set up by the Coalition as a one-stop shop for government services is facing hundreds of job cutsCredit: Oscar Colman

The cuts inside Service NSW have taken place in three waves of restructures, which the NSW government says were made “following several years of significant short-term growth” during COVID-19. A spokesman for Customer Service Minister Jihad Dib said agency staff had risen to 4950 in June 2024, up from 2860 in June 2019.

“This is not sustainable,” the spokesman said.

The Minns government was elected after promising to downsize the number of senior executives in the public service by 15 per cent.

The Herald has previously reported 125 positions had been made redundant from senior roles inside Service NSW. However, the culling has been more severe than previously reported, and it has come from outside the agency’s senior ranks.

The government says consultation on restructuring is ongoing. Some areas earmarked for job cuts include the disaster recovery and preparation unit.

Coalition customer service spokesman James Griffin said the cuts were “tragic and shortsighted”.

“These roles aren’t just senior executives. They are project managers and staff that get things done at Service NSW,” he said.

Established after the amalgamation of a series of agencies including Roads and Maritime Services and Births, Deaths and Marriages, Service NSW is held up by the previous government as one of its major successes.

The agency is responsible for handing out grants following natural disasters, as well as a long list of government services.

“I’m regularly hearing serious concerns from digital industry stakeholders that a decade of innovation by the NSW government is disappearing by the month under the Minns government,” Griffin said.

The cuts are taking place in the context of a series of so-called “spill-and-fill” restructures, where roles are cut and employees are invited to reapply for a smaller pool of positions.

Job cuts have also taken place more widely in the Department of Customer Service. At Cyber Security NSW, eight positions are facing the axe.

The government has also swung the axe in other public service agencies following restructures; at iCare, the state insurer, about 236 positions are slated to go as part of a 7 per cent cut reduction in its overall headcount. The agency said it was still finalising its headcount.

The government says many of the roles proposed for culling are contractor positions. In DCS, contractor headcounts have declined by around 50 per cent.

Dib’s office said changes to Service NSW’s disaster response teams would not impair its “ability to quickly scale up and support communities in times of natural disasters”.

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