The Reserve Bank of New Zealand plans to cut staff by 21% over the next two months to save funds.

In response to the New Zealand government's decision to restrict funding, the Reserve Bank of New Zealand plans to lay off approximately one-fifth of its staff in the next two months. A spokesperson for the Reserve Bank of New Zealand announced on Monday in Wellington that the bank plans to lay off a net total of 142 people, which is 21% of its approximately 660 employees. The spokesperson stated that there are currently around 35 vacant positions. The spokesperson mentioned that the Reserve Bank of New Zealand is currently in the final stage of its structural design and implementation process, and is continuing to negotiate with staff, but it is expected that the affected employees will leave by October 13. In April, the Reserve Bank of New Zealand stated that it would review its expenditure and staffing situation. Prior to this, the bank had reached a five-year funding agreement with the government, but the size of this agreement was smaller than initially expected. The agreement stipulated that the operating expenditure of the Reserve Bank of New Zealand would be 750 million New Zealand dollars (approximately 446 million US dollars), whereas the bank had initially expected an expenditure of 1.03 billion New Zealand dollars. Former Reserve Bank of New Zealand Governor Adrian Orr believed that the revised funding was not enough for the Reserve Bank of New Zealand to effectively fulfill all its responsibilities, which was why he suddenly resigned in early March. Following the New Zealand government's cost-cutting measures to restore budget surpluses, the city of Wellington, where the Reserve Bank of New Zealand is located, has been severely impacted by the layoffs of thousands of public sector employees.