EU country turns to AI to slash government workforce

The Netherlands plans to axe 25,000 jobs to save nearly $4 billion annually

The Netherlands has unveiled plans to cut around 25,000 full-time government positions by 2035, turning to artificial intelligence and sweeping administrative reforms to reduce costs and bureaucracy.

Announced on Monday, the overhaul aims to save €900 million ($1 billion) by next year, with annual savings projected to reach €3.5 billion by 2035. The job cuts will be phased in over several years, with police and security services exempt.

Planned measures include simplifying regulations, reducing advisory bodies, standardizing IT systems, and expanding digital services.

The plan follows years of rapid growth in the Dutch civil service. The central government workforce reached a record 160,000 positions in 2025, an increase of more than 40% since 2018, according to official figures.

State Secretary Eric van der Burg said excessive rules, exceptions, and procedures had made it increasingly difficult for the government to address problems, while mounting costs demanded action.

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“We cannot continue to do what we did,” he said, calling for a government that is “simpler, smarter and smaller.”

Other European countries are also embracing AI to streamline public administration.

Denmark announced plans last year to free up 50 million working hours annually by 2035 through AI, equivalent to roughly 30,000 full-time positions, without committing to corresponding job cuts.

Albania went a step further in September 2025, appointing an AI-generated virtual minister to help combat corruption in public procurement. However, the country’s AI procurement system had yet to be rolled out as of October.

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The push comes as rapid advances in AI fuel concerns about widespread disruption to employment.

SpaceX CEO Elon Musk warned in July that the transition would be “a bumpy road,” predicting that AI would eventually outperform humans in any job.

Microsoft co-founder Bill Gates has also warned of major upheaval in the labor market, while arguing that certain professions, including caregiving, should remain “human reserved” even if AI becomes capable of performing them.