The axe is falling on hundreds of jobs in the public sector, with the latest losses looming at Oranga Tamariki and The Ministry of Health.
Ministries have been ordered to find between 6.5 and 7.5% in savings.
It's part of a wave of redundancies across both the public and private sectors - that's causing a flood in the job market - and prompting concern over a brain drain.
Minister for Employment Louise Upston speaks to Susana Leiataua.