Health New Zealand, also known as Te Whatu Ora, is initiating a call for voluntary redundancies among administrative, advisory, and specialized roles as it faces the prospect of further job cuts due to financial constraints. This move is part of a broader effort to address the budgetary challenges confronting the agency, which has been under significant pressure to streamline its operations and focus resources more effectively on frontline healthcare delivery.

In a communication, which has since been made publicly available on Te Whatu Ora’s website, Chief Executive Margie Apa emphasized the need for the public health system to “live within its means.” According to Apa, achieving sustainability requires the organization to operate more efficiently, which involves reallocating resources to where they are most needed—direct patient care.
She acknowledged that the measures already in place have not been sufficient to resolve the financial difficulties or to ensure that the workforce is appropriately aligned with the organization’s needs.
One of the most significant expenditures for Te Whatu Ora is staff costs. Therefore, a critical component of the agency’s strategy is to reassess its size and organizational structure as part of a broader “reset.” As a first step in this process, Te Whatu Ora is offering voluntary redundancy to a limited number of employees in specific areas, including administration, policy advisory, and specialist services. The window for expressing interest in these voluntary redundancies opened on Thursday and will close on 13 September, with decisions expected to be made by mid to late September. Applications for voluntary redundancy will be evaluated on a case-by-case basis, ensuring that the process is conducted thoughtfully and selectively.

Apa noted that, at this stage, the offer is not being extended more broadly across the organization. However, she mentioned that any staff members interested in voluntary redundancy in the future would have the opportunity to pre-register their interest. She also encouraged staff to respect the privacy and decisions of colleagues who may be considering this option, recognizing the potential difficulty of the situation. An all-staff hui is scheduled to take place tomorrow, providing an opportunity for further discussion and support.
This latest move comes amid ongoing restructuring efforts at Te Whatu Ora, particularly within its commissioning team. Previously, the agency announced plans to cut 268 roles in this area, reducing the total number of staff in commissioning from 1004 to 756, and now down to 482 because of the first round of restructuring. These changes are part of a broader strategy to align the agency’s workforce with its current operational needs and financial realities.

However, the decision to offer voluntary redundancies has been met with strong criticism from the Public Service Association (PSA). The union has described the offer as “rash and reckless,” arguing that it is unfocused and too far-reaching. According to the PSA, the roles impacted by this decision include those in administration, procurement and supply chain, information and analytics, research, policy and programs, as well as communications, finance, and human resources. The union’s national secretary, Kerry Davies, expressed concern that the loss of hundreds of specialist staff due to government-imposed spending cuts would further destabilize an already strained public health system.
Davies argued that behind-the-scenes workers, such as administrators, IT support, and logistics staff, are essential to ensuring effective patient care. She warned that the hiring freeze in health has already placed immense pressure on the workforce, leading to dire consequences such as 72-hour wait times for mental health care. According to Davies, further reductions in this workforce could have catastrophic effects, making it even more difficult for patients to receive the care they need.

While Health New Zealand has declined to provide additional comments while the voluntary redundancy process is underway, the situation underscores the ongoing challenges facing the public health system as it seeks to balance financial sustainability with the need to maintain high-quality care for the population. The outcome of these voluntary redundancies, and the subsequent impact on the health system, will be closely watched in the coming months. -TIN Bureau