4 Countries That Cut Civil Servant Jobs for Efficiency and Reform

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TEMPO.CO, Jakarta - President of the United States Donald Trump has dismissed 1,000 civil servants at the Department of State as part of a larger government reorganization plan.

The move followed a Supreme Court decision that granted the federal government the authority to continue terminating employees under the reduction in force (RIF) scheme.

This wave of civil servant layoffs is not unique to the United States. Several other countries have also implemented similar policies, citing reasons such as bureaucratic efficiency, cost savings, and institutional reform.

Here is an overview of civil servant layoff policies in several countries:

1. United States

The U.S. Department of State began dismissing 1,353 employees starting July 11, 2025. This figure includes 1,107 civilian employees and 246 members of the foreign service. The layoffs are part of an effort to cut around 15 percent of the department's domestic workforce.

The downsizing accompanies a broader reorganization, which involves closing or merging several domestic offices and streamlining more than 300 out of 734 bureaus. Before implementing the layoffs, the department had launched a voluntary retirement program called Fork in the Road. Approximately 1,575 employees chose to leave through that program.

Deputy Secretary of State for Management and Resources Michael Rigas said in an internal email that every effort had been made to support those departing, including participants in the Voluntary Separation Program.

2. Vietnam

The Vietnamese government is undergoing a sweeping bureaucratic reform that has resulted in the reduction of tens of thousands of civil servant positions. The reform aims to streamline the country’s administrative system, which is often criticized as being overly complex and inefficient.

General Secretary of the Communist Party To Lam stated that the reforms are intended to promote fast, stable, and sustainable development. The government believes that a leaner bureaucracy will lead to more responsive and effective policymaking.

The reform is also aimed at reducing state spending. According to VOA News, the Vietnamese parliament approved plans to eliminate one in five public sector jobs, with an estimated savings of 4.5 billion U.S. dollars over five years.

The measures include restructuring ministries, state institutions, government media, and security bodies. The savings are expected to be redirected to priority development sectors.

Minister of Home Affairs Pham Thi Thanh Tra described the reform as the most significant since Vietnam’s founding in 1945. To Lam also emphasized that government agencies should not become shelters for underperforming officials, signaling a push to improve the quality of public service personnel.

3. Argentina

In January 2025, the Argentine government laid off 1,400 employees from the Ministry of Health as part of efforts to optimize human resources and improve efficiency in national hospital services.

This follows earlier cuts in 2024, when 120 employees were dismissed from Posadas National Hospital. The layoffs also affected Baldomero Sommer Hospital, where 130 staff members received termination notices.

Leonardo Fernandez, a representative of the workers’ union at Laura Bonaparte Hospital, described the situation as a “bloodbath.”

President Javier Milei responded to the criticism by reaffirming his commitment to drastic spending cuts. On social media, he wrote, “We continue forward with a chainsaw. It’s over,” using the slogan "Afuera" (out), which has become a symbol of his cost-cutting campaign. The term "chainsaw" refers to a campaign prop representing his aggressive approach to reducing the national budget.

4. Pakistan

The Pakistani government eliminated about 150,000 public sector jobs under a national savings initiative launched in 2024. This included a 60 percent reduction in positions across various government institutions, as well as a broader effort to simplify the country’s bureaucratic structure.

Finance Minister Muhammad Aurangzeb explained that the layoffs are part of a larger plan to restructure the federal government and reduce its financial burden. As part of the same effort, several public hospitals are expected to be transferred to provincial governments to support decentralization.

The plan was initiated by a committee formed by Prime Minister Shehbaz Sharif. The committee was tasked with implementing a wide-ranging budget rationalization program in response to prolonged economic challenges.

Adinda Jasmine, Melynda Dwi Puspita and Baiti Wulandari contributed to the writing of this article.

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