Finance Minister Cathy Bennett said the province has to create a "flatter, leaner" civil service, in an effort to save $20 million to $25 million per year
ST. JOHN’S, N.L.—Newfoundland and Labrador’s Liberal government is cutting 287 management jobs from its civil service.
Finance Minister Cathy Bennett said it’s a difficult decision, but the province has to move to create a “flatter, leaner” civil service, resulting in savings of $20 million to $25 million annually.
She said 90 of the eliminated jobs are currently unfilled, while the remainder will result in immediate layoffs.
The move comes as the province is projecting a budget deficit of $1.58 billion by the end of the current fiscal year.
Bennett hinted at the possibility of the layoffs in January of last year, after sending directives to departments and agencies seeking savings of 30 per cent over the next three years.
Premier Dwight Ball has said the province faced the risk of credit downgrading if he didn’t take action to control the size of the deficit.
However, during the election campaign Ball had promised to avoid layoffs, despite clear indicators that resource revenues were continuing to drop.