One in five roles could go at the Reserve Bank
Friday, 8 August 2025
Almost a fifth of the Reserve Bank workforce could be cut as it grapples with a budget allocation 25% below what it wanted.
After inquiries from The Post, RBNZ confirmed it had concluded consultation on “proposed broader organisation changes”, and told staff its final decisions last Wednesday.
Asked for the number of jobs those decisions affected, a spokesperson said its proposal was for a net change decrease of 142 roles, which included 35 positions currently vacant.
RBNZ had 660 roles as of January this year - with 142 roles representing about 20% of the workforce.
“The full impact of the final decisions is still being assessed,” the spokesperson said, noting they were still in consultation with staff.
“We recognise that this is an uncertain time for our people and are committed to handling this process with care and consideration.”
In April, the Government announced it would cut the bank’s funding by about 25%.
Finance Minister Nicola Willis said at the time the reduction in the central bank’s operating funding reflected the need for all government agencies to identify cost savings.
The bank had sought just over $1 billion in funding over the next five years, “but the Treasury advised me that that amount did not represent good value for money”, Willis said. Instead, the bank was to be allocated $750m to meet its operating expenses and just under $26m for capital expenditure.
In July, after months of delay, RBNZ released documents that were requested using the Official Information Act, revealing what was behind the shock resignation of former Governor Adrian Orr in March.
Orr did not believe the central bank could adequately fulfil its functions in light of budget cuts agreed between the Reserve Bank’s board and Willis. He had criticised the budget cut proposal, defended a bank policy and “expressed frustration” about the bank’s relationship with the Treasury in his final meeting with Willis, according to meeting minutes released by RBNZ.
“The governor made it clear that he did not support the Treasury view that funding of around $690m was adequate…” it recorded.
The 2025-2030 RBNZ five-year funding agreement Cabinet paper stated its workforce had “expanded significantly” from 255 full time equivalent roles in 2017/18 to 660 as of January 31, 2025.
“A considerable portion of this increase can be attributed to the growth in staff numbers within non-legislative functions,” it said.
Looking at RBNZ’s annual reports, RBNZ’s last decrease in staff numbers was in 2016, when it dropped slightly to 240. In 2020 it was 349, rising to 601 in 2024.
– Additional reporting by Tom Pullar-Strecker