The rapid expansion of artificial intelligence could soon change the way governments operate, and thousands of public sector employees in the Netherlands are facing an uncertain future as a result. The Dutch government has announced plans to eliminate an estimated 25,000 full-time positions across central government over several years, with AI expected to play a role in making the remaining workforce more productive.
The proposed reductions form part of a wider effort to reduce government spending, simplify administration and modernize public services. The financial targets are substantial, with annual savings expected to reach €3.5 billion from 2035. However, questions remain about how much of the planned reduction will depend on AI and whether government departments can maintain service quality with significantly fewer employees.
Netherlands Announces Plans To Eliminate 25,000 Government Positions
The Dutch government has confirmed that it intends to reduce its central government workforce by approximately 25,000 full-time equivalents. The cuts will be introduced over several years rather than through one immediate round of redundancies.
According to the government statement, the planned reductions are expected to generate savings of €900 million in 2027. That figure is projected to increase substantially, reaching approximately €3.5 billion annually from 2035.
The announcement comes after years of growth in the country’s central government workforce. Bloomberg reported that the number of government officials reached a record 160,000 at the end of 2025, representing an increase of approximately 41% compared with 2018.
The expansion occurred despite previous governments pledging to reduce public sector staffing. The latest announcement suggests that the current administration intends to take a considerably different approach to the size and operation of government departments.
State Secretary for Kingdom Relations and Effective Government Eric van der Burg acknowledged that significant changes would be necessary.
In the government’s statement, he said: “We cannot keep doing what we did. … That is why we are going to make sharp choices for a central government that really works: simpler, smarter and smaller.”
His comments reflect the administration’s intention to reduce administrative costs while changing how government organizations handle their responsibilities.
However, the planned reduction does not apply equally across the entire public sector. Police and defence are among the areas exempted from the proposed cuts, while the precise distribution of reductions across other departments remains under development.
The government is expected to provide further details through its spring memorandum, which will outline the measures behind its budget reductions.
Which Government Departments Could Face The Biggest Cuts?
The proposed reductions are expected to affect different parts of the Dutch government unevenly. Ministries, inspectorates and agencies responsible for implementing government policies are among the areas expected to experience significant changes.
Bloomberg reported that some departments could face staffing reductions of 45% or even 60%, citing a letter sent to parliament by Van der Burg.
Such figures indicate the scale of the restructuring being considered. Departments responsible for administrative processes and policy implementation could face particularly difficult decisions as the government attempts to reduce its overall workforce.
The exact impact will depend on how individual organizations reorganize their responsibilities and identify opportunities to reduce administrative workloads.
Ministries And Administrative Agencies Face Restructuring
Ministries and government agencies frequently handle substantial administrative responsibilities, including implementing regulations, evaluating policies and coordinating government programmes.
The Dutch government’s plans suggest that these activities will undergo closer examination. Departments may be expected to identify processes that can be simplified, combined or eliminated entirely.
Some administrative responsibilities could also be handled through standardized digital systems, potentially reducing the amount of manual work required from employees.
However, the government has not yet published a complete breakdown showing which individual positions will disappear or how departments will distribute their responsibilities.
Police And Defence Are Among The Exemptions
Not every government organization will be affected by the reductions.
Police and defence are among the areas excluded from the planned cuts, meaning the 25,000-position target will primarily affect other parts of central government.
This distinction is important because the headline figure does not represent an equivalent reduction across every public service.
The government will need to determine how to distribute the savings while ensuring that departments retain enough employees to carry out their responsibilities.
Artificial Intelligence Will Play A Central Role In The Government’s Plans
Artificial intelligence is one of the most significant elements of the proposed overhaul. The Dutch government intends to use technology to increase productivity and reduce the amount of administrative work required across public organizations.
However, the announcement does not identify every AI system that will be introduced or specify precisely which government tasks could eventually be automated.
The cabinet is expected to present its goals and savings plans for AI during the first quarter of 2027.
Parliament has already passed non-binding motions calling for government productivity to increase by 20% through AI, according to Bloomberg.
That target provides an indication of the ambitions surrounding the technology, although it does not establish how much of the planned workforce reduction will directly result from automation.
Government Departments Have Already Started AI Projects
AI projects are already underway in several areas of the Dutch government. The administration wants to expand the use of these systems and identify opportunities to improve productivity across different organizations.
Potential applications could involve administrative processing, information management and other repetitive tasks. However, the references do not establish which specific activities will be automated under the new programme.
This distinction is important because AI implementation requires more than simply introducing new software.
Government organizations must determine whether systems can perform particular tasks accurately, how employees will oversee their output and what happens when automated processes encounter complicated cases.
The government has yet to publish the detailed implementation framework needed to answer those questions.
The Productivity Target Raises Questions About Employment
The proposed 20% productivity improvement creates another important consideration for government employees.
If departments can complete the same amount of work with fewer resources, the administration may be able to reduce staffing requirements without eliminating every existing service.
However, achieving those gains across government operations could prove difficult. Different departments perform different functions, and their workloads may involve decisions that require human judgment.
AI systems may assist with routine administrative responsibilities, but the available information does not establish how much work they can reliably replace.
The government’s 2027 plans should provide a clearer picture of how it intends to connect productivity improvements with employment reductions.
Government Wants To Reduce Bureaucracy And Administrative Spending
AI is only one part of the Netherlands’ planned government overhaul. The administration also intends to reduce bureaucracy and reconsider how public organizations manage their internal operations.
One major target involves regulations. The government has already announced plans to eliminate or simplify at least 500 rules annually.
Reducing unnecessary administrative requirements could lower the workload for government departments and make certain processes easier for residents and businesses.
The administration also intends to review its extensive network of advisory organizations.
The current system includes 28 permanent advisory councils and approximately 150 advisory committees. The government wants to reduce these numbers, with specific targets expected later this year.
It is also examining the number of policy evaluations conducted annually.
Government organizations currently carry out approximately 400 evaluations each year, and the administration wants considerably fewer of them.
Other proposed changes include:
- Shared office space: Government departments will move towards one workplace for every two employees.
- Building reductions: Surplus government buildings will be sold to reduce property and maintenance expenses.
- Standardized IT systems: Departments will use more consistent technology rather than maintaining separate systems unnecessarily.
- Centralized purchasing: Government organizations will purchase goods and services together more frequently.
- Simplified procurement: Departments will face fewer purchasing requirements as the administration attempts to reduce administrative complexity.
These measures indicate that the savings programme extends well beyond reducing employee numbers.
The government is also examining how public organizations share information. A proposed data-sharing framework would allow government bodies to exchange information more securely, potentially reducing the need for residents and businesses to repeatedly submit details already held by public authorities.
The cabinet aims to develop a legal solution for this arrangement within two years.
If implemented successfully, the framework could reduce repetitive administrative work for both government employees and members of the public.
European Technology Independence Is Another Government Priority
The Netherlands is also considering where its government technology comes from as it prepares for a wider digital transformation.
According to Bloomberg, the administration wants to work more closely with Dutch and European technology suppliers wherever possible.
The intention is to limit dependence on technology providers based outside Europe.
This preference could influence future government purchasing decisions, particularly as departments prepare to modernize their IT infrastructure and introduce more AI-powered systems.
The Dutch government has already begun making changes to its technology arrangements.
Tax Office Moves Away From Microsoft 365 Cloud
The Dutch tax office is moving away from Microsoft’s 365 cloud environment towards its own servers and open-source alternatives.
The government is also developing its own Linux desktop.
These developments form part of a broader effort to gain greater control over the technology supporting public administration.
Reducing dependence on external technology providers could give government organizations more control over their systems and data infrastructure.
However, the announcement does not establish that all non-European suppliers will be excluded from future government projects.
For technology companies working with the Dutch public sector, the preference for European suppliers could become an important consideration when preparing proposals and competing for contracts.
Modernization Could Create New Technology Requirements
The proposed restructuring could generate demand for systems that help departments operate with fewer employees.
Workflow automation, systems integration and updated digital infrastructure could become important areas of investment.
Technology providers may also be expected to demonstrate measurable improvements in efficiency rather than simply offering new software.
Government departments will need to understand the financial implications of introducing these systems.
Licensing, integration, employee training, human oversight and ongoing maintenance can all influence whether an AI project produces genuine savings.
A system that processes routine cases quickly may still require substantial human involvement when information is incomplete or a decision needs additional examination.
The government’s eventual procurement requirements should provide greater clarity about which technology projects receive funding.
New Zealand Is Pursuing A Similar Public Sector Reduction
The Netherlands is not the only country considering substantial public service reductions alongside increased AI adoption.
New Zealand has also been examining ways to reduce the size of its public sector, with plans targeting approximately 8,700 core public service positions by 2029.
According to reporting by RNZ, the reductions would leave the country with approximately 55,000 core public service roles.
The broadcaster’s report drew on 16 government documents released to it, offering insight into discussions surrounding the proposed workforce changes.
Public Service Commissioner Sir Brian Roche told ministers that reaching the 55,000-position target would require a “much more aggressive/targeted approach to AI.”
His comments suggest that artificial intelligence is expected to play a significant role in the country’s efforts to reduce staffing levels.
However, the New Zealand documents also revealed concerns about the potential consequences of reductions on this scale.
Officials had warned ministers that substantial cuts could put public service performance at risk.
The documents also indicated that officials had not modelled how many positions AI might replace or calculated the cost of introducing the technology.
That leaves important questions about whether the expected efficiency improvements will be sufficient to support the planned reductions.
There are also concerns surrounding the financial sustainability of relying on external AI providers.
Some commentators have warned that AI developers could increase token and licensing prices once competition becomes more limited.
If governments become heavily dependent on particular technology providers, future operating costs could become harder to control.
The Dutch and New Zealand approaches share a common objective: reducing public sector expenditure while expecting technology to improve productivity.
However, both examples demonstrate the difficulty of establishing workforce targets before the full operational consequences of AI adoption are understood.
Can AI Deliver Billions In Savings Without Affecting Public Services?
The Dutch government’s financial ambitions are considerable, but achieving them will require more than reducing employee numbers and introducing automation.
Public services must continue operating effectively throughout the transition.
Government departments handle responsibilities that affect individuals and businesses directly. Delays, administrative mistakes and poorly managed processes can create difficulties for people relying on public services.
Reducing staffing levels before replacement systems are properly established could increase pressure on remaining employees.
It could also create situations where departments struggle to manage complicated cases that automated systems cannot resolve independently.
The government’s gradual approach gives departments time to introduce changes over several years. However, the available information does not yet establish how service quality will be measured throughout the process.
Measuring Productivity Will Be Essential
The proposed AI productivity target raises questions about how the government will determine whether its technology investments are successful.
Simply measuring how quickly a system processes information would provide an incomplete picture.
Accuracy, reliability and the number of cases requiring human intervention are also important considerations.
A department might process more routine applications through automation while still struggling with complex situations that require individual attention.
The government will therefore need a clear understanding of how much work its systems can handle and where employees remain necessary.
The financial case must also account for implementation expenses and ongoing technology costs.
Without those calculations, headline savings could give an incomplete picture of the programme’s actual financial performance.
Employees Face Uncertainty During The Transition
The planned reduction of 25,000 positions also raises questions about the employees currently working across central government.
The government has not yet provided a complete account of how individual positions will be affected or what arrangements will apply to employees in departments facing the largest reductions.
The available references also do not establish how many workers could be replaced directly by AI rather than through other organizational changes.
For employees, that uncertainty makes the coming years particularly significant.
Departments will need to manage changes in responsibilities while maintaining the services they are expected to provide.
The transition could also require employees to adapt to new systems and develop different technical skills as administrative processes change.
The government has yet to publish the detailed workforce and implementation plans needed to explain how these changes will be managed.
What Happens Next In The Netherlands’ AI Plans?
The first major milestone will arrive during the first quarter of 2027, when the Dutch cabinet is expected to present its goals and savings plans for using AI across government.
The administration is also expected to provide further details through its spring memorandum, which will outline the financial measures behind the planned reductions.
Within six months, the government is expected to present a multi-year approach for central government, including proposals from a committee examining its future structure.
These announcements should help clarify how the administration intends to distribute the 25,000-position reduction and connect its employment targets with technology investments.
The coming plans will also reveal more about procurement priorities and the role Dutch and European suppliers could play in the modernization programme.
For now, the government has established an ambitious financial target and a clear intention to reduce the size of central administration.
The real test will be whether departments can achieve those savings while continuing to provide reliable public services. The 25,000 positions represent a major change in the Netherlands’ approach to government employment, and the decisions made before 2027 will determine how that transformation unfolds.
