In an effort to cut back on costs, the Ministry of Business, Innovation, and Employment (MBIE) has proposed a further voluntary redundancy process to staff who were not affected by the previous change proposal.

The changes were announced to staff today, ahead of the May 30 Budget. Other agencies, including the Ministry for Primary Industries and Ministry of Health, also today warned staff of further efforts to cut back on costs with hundreds of staff facing redundancy.

MBIE has been asked to find 7.5 per cent cost savings and reduce its reliance on contractors and consultants.

This month, NZME revealed the ministry had accepted 111 voluntary redundancies in its previous change proposal, as it seeks to slash about $412.5 million from its books.

Since early December, the ministry has had a recruitment pause in place, a tactic used by several agencies looking at cost savings.

A ministry spokesperson confirmed stop-work notices and specific government legislation changes also caused some level of savings.

The deputy secretary of corporate services, finance and enablement, Richard Griffiths, told NZME: “In response to the Government’s work programme, we have also disestablished positions across MBIE, including where stop-work notices have been received.”

In total, six positions related to the Lake Onslow battery project have been cut, alongside 25 in the Construction Sector Accord ITP and 46 in the regional skills leadership group.

In a push to reduce spending on contractors and consultants, the ministry has confirmed the equivalent of 70.7 contractors have been moved to permanent fixed-term positions.

Today’s announcements of job reductions at MPI and the Ministry of Health would see about 180 roles go, some of which are vacant. The Ministry for Primary Industries is looking at cutting about 9 per cent of its people, equating to 384 roles.

• MPI and health ministry confirm hundreds of jobs to be cut
• It's official - latest GDP result confirms New Zealand is in recession
• 'Unfortunate': Minister David Seymour blames previous Government for current 'fiscal cliffs'

Responding to the announcements earlier today, Public Service Minister Nicola Willis told reporters her “heart goes out to anyone who loses their job in any circumstances”, adding no Government can live beyond its means.

Willis would not estimate how many jobs, in total, were set to be slashed in relation to the Government’s cost-savings asks.

Final proposals will be signed off by the minister, in relation to the May 30 Budget.

Azaria Howell is a Wellington-based multimedia reporter with an eye across the region. She joined NZME in 2022 and has a keen interest in city council decisions, social housing and transport.