Dutch Government to Cut 25,000 Jobs by 2035 in AI-Driven Efficiency Push

Netherlands Announces Major Workforce Reduction

The Dutch government unveiled plans to eliminate 25,000 full-time central government positions by 2035, representing approximately 16% of its current workforce1

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. State Secretary for Kingdom Relations and Effective Government Eric van der Burg outlined the ambitious cost-cutting initiative in a letter to Dutch parliament on Monday, emphasizing the need to modernize government operations. The number of central government officials reached an all-time high of 160,000 by the close of 2025, marking a 41% rise since 20182

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. Van der Burg stated that the government "cannot keep doing what we did," positioning the reforms as essential for creating a central government that is "simpler, smarter and smaller."

Aggressive Savings Targets Drive Reform

The cabinet must achieve annual savings of €900 million (approximately $1 billion) by 2027, with targets escalating to €3.5 billion (around $3.9 billion) from 2035 onward1

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. Police and defense sectors remain exempt from the workforce reduction measures. Ministries, inspectorates, and agencies that carry out policy face the deepest reductions, with some departments confronting cuts of 45% or 60%2

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. The government will detail how it achieves these savings in its spring budget memo. Van der Burg rules out implementing a hiring freeze, instead opting to assess each departure individually to determine whether replacement is necessary.

AI Applications to Enhance Productivity

The Dutch government positions AI-driven efficiency as central to its restructuring strategy. Parliament has passed several non-binding motions urging the cabinet to lift productivity across government by 20% using AI applications2

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. Van der Burg pointed to these motions to justify the job cuts. The cabinet will come up with goals and savings plans for deploying AI to work more productively in the first quarter of 20271

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. Earlier reports from Dutch news outlets indicated that the government had been planning to incorporate AI efficiency measures since earlier this year. Van der Burg wants to "apply AI even more broadly" after several AI initiatives have already been established across different government sectors1

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. Fewer civil servants will be needed over the next 10 years as rules are simplified and work is organized more efficiently through these technological interventions.

Comprehensive Operational Restructuring

Beyond AI implementation, the government outlined additional measures to reduce workforce needs and enhance productivity. Plans include providing just one desk per pair of employees and selling off surplus buildings to cut real estate costs2

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. The government also intends to standardize IT systems across departments and reduce the number of permanent advisory councils from 28 and advisory committees from about 1502

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. Concrete targets for these bodies will be set this year. Additionally, the government commits to scrapping or simplifying at least 500 rules annually to streamline operations and reduce administrative burden.

What This Means for Public Sector AI Adoption

The Netherlands' aggressive approach signals a broader trend of governments worldwide exploring AI to address budget pressures and operational inefficiencies. The 20% productivity target through AI applications represents one of the most ambitious public sector AI efficiency goals announced to date. Watch how the cabinet defines specific AI deployment strategies in its first quarter 2027 plans, as this will provide concrete examples of how governments can leverage technology to reduce workforce while maintaining service delivery. The exemption of police and defense suggests strategic prioritization of security functions even amid fiscal constraints. Long-term implications include potential shifts in government employment patterns across Europe as other nations observe the Dutch experiment's outcomes over the next decade.