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Dutch government plans to cut 25,000 jobs and use AI to raise productivity

Dutch government plans to cut 25,000 jobs and use AI to raise productivity

The Dutch cabinet published an efficiency plan that would eliminate 25,000 full-time government jobs and use AI to work more productively. It targets cost savings of 900 million euros by 2027, rising to 3.5 billion euros by 2035. Police and defense are excluded from the cuts.

Key points

  • The Dutch cabinet plans to eliminate 25,000 full-time government jobs.
  • Targeted savings are 900 million euros by 2027 and 3.5 billion euros by 2035.
  • AI goals and savings plans are due in the first quarter of 2027.

What happened: The Dutch cabinet published a detailed plan to make government more efficient, including eliminating 25,000 full-time jobs and using AI to boost productivity, Engadget reported. State Secretary Eric van der Burg wrote to parliament that the effort is part of a push to make government "simpler, smart and smaller."

The details: The government aims to cut costs by 900 million euros, about $1 billion, by 2027, rising to 3.5 billion euros, about $3.9 billion, by 2035. Not every agency will be cut: police and defense are excluded. The cabinet plans to set goals and savings plans for deploying AI in the first quarter of 2027.

Background: Dutch outlets reported earlier that the government was planning to include AI in its savings efforts. Bloomberg reported that van der Burg wants to apply AI more broadly, building on initiatives already underway in several government sectors.

What to watch: The government has not disclosed which AI tools or systems it will use, how the cuts will be divided among agencies, or whether the reductions will come through layoffs or attrition. Engadget said it is unclear how AI will be used to reduce costs. Reactions from unions or employee groups were not reported. The AI savings plans due in early 2027 should show how much of the target depends on AI.

Our take

Public sector AI adoption is now being tied directly to headcount targets, which raises the bar for proving what AI tools actually deliver.

Sources