Government intends to eliminate 40,000 employment positions within the local administration of Romania
Romania's Minister of Development, Public Works, and Administration, Cseke Attila, has announced a significant overhaul of the local administration, aiming to cut more than 40,000 jobs as part of a broader reform to reduce public expenses and support fiscal sustainability.
The expected annual financial savings from these job cuts amount to approximately RON 2.2 billion (around EUR 434 million or over EUR 400 million). This announcement was made during an interview, as cited by Agerpres.
The reform will primarily affect local administration, with some reductions also planned at the central government level. Approximately 4,000 positions in local police forces will also be eliminated.
The goal is to increase the revenues of local authorities, as the state expects it will no longer be able to financially support municipalities in their current structure in the difficult economic context anticipated this year and next.
The reduction will not be uniform; local authorities that have full staffing will face larger cuts, requiring significant reorganization. Those with unfilled positions will be less impacted.
As of November 2024, Romania's public sector workforce numbers around 1.306 million, with roughly 838,000 in central public administration and about 467,881 in local public administration. This means the cuts target nearly 9% of local public administration staff.
The job cuts in local administration are part of the Romanian government's second fiscal austerity package, aimed at addressing the country’s budget deficit, which was €2.2 billion higher in the first half of 2025 compared to the previous year. This follows VAT increases and other budget tightening measures implemented since August 1, 2025.
The government also plans to submit legislative proposals by the end of August 2025 to formalize the reorganization and efficiency improvements in public administration. However, public sector unions have protested, urging the government to withdraw the job cut plans due to concerns over austerity impacts.
In summary, the 40,000 job cuts in Romania’s local administration announced by Minister Cseke Attila aim to achieve significant budgetary savings of about RON 2.2 billion annually, reflecting efforts to reduce the fiscal deficit and adapt to constrained state support for municipalities amid challenging economic conditions.
The job cuts in Romania's local administration, as part of the second fiscal austerity package, are not only a reflection of the government's policy-and-legislation to address the country’s budget deficit but also a significant shift in politics, signaling tough economic measures to come. This general-news story, as reported by Agerpres, also indicated that the cuts will mostly impact local administration, with over 4,000 positions in local police forces likely to be eliminated, aiming to reduce public expenses and support fiscal sustainability.
