Argentina public sector workforce reduction

The Argentine government is implementing a policy to reduce the size of the national public sector and state-owned enterprises, a process referred to by the Javier Milei administration as the “motosierra” (chainsaw).

Data from the National Institute of Statistics and Censuses (INDEC) indicates that the workforce in the National Public Administration and state-owned companies fell from 341,465 employees in December 2023 to 269,025 in August 2026. This reduction represents a decrease of over 72,000 positions.

To continue these efforts, the Ministry of Deregulation and State Transformation, led by Federico Sturzenegger, is preparing a decree for a voluntary retirement plan for permanent civil service employees within the national public administration and decentralized agencies. Expected to be officially announced in early October, registration for the plan is scheduled to begin in November.

The program targets three specific groups: employees who have reached retirement age with sufficient contributions; those of retirement age who require more years of contributions; and younger employees wishing to leave public service voluntarily. Compensation amounts will vary based on individual circumstances. The government anticipates at least 1,000 participants in the upcoming call for applications.

Officials state that the workforce reductions achieved between November 2023 and August 2026—which now total 74,332 people, or a 21.6% reduction—have resulted in savings exceeding USD 2.5 billion.