The Netherlands plans to shed around 25,000 central government jobs over the coming years, handing the work to artificial intelligence and automation rather than filling the posts with new hires. The aim is to save €900 million a year by 2027, a figure set to climb to €3.5 billion (around $3.9 billion) a year from 2035.

The central government workforce currently sits at a record high of roughly 160,000 employees. That is up 41% since 2018, even after earlier cabinets pledged to rein in hiring.

Eric van den Burg, the State Secretary for Effective Government, said the government could not carry on as it had been. He added that it was ready to make tough choices to build a system that is simpler, smarter and smaller.

The Dutch parliament wants to use AI to lift overall government productivity by 20%. The cabinet will set out a detailed plan early next year on how the technology will be used across government operations. When staff leave their roles, the government will first check whether a machine or AI can take on the workload before hiring a human replacement.

The job cuts sit inside a broader modernisation drive. The government plans to standardise IT systems across departments, shrink office space with a rule of one desk for every two employees, and sell off surplus buildings. It also wants to simplify or scrap at least 500 rules a year.

Police and defence forces are shielded from the cuts. Other ministries and policy-making agencies face far heavier reductions, with some departments expected to lose between 45% and 60% of their staff.

At 1.8%, the Dutch budget deficit is among the smallest in the European Union. The country's reputation for fiscal conservatism and longer-term financial concerns are behind the decision to move now.