THURSDAY, SEPTEMBER 24, 2026|No. 16219
News · Government

Department of Internal Affairs Proposes Staff Reductions Amid Restructure

The Department of Internal Affairs is consulting on a significant restructure that could lead to a net reduction of 28 roles in its community operations group.

A government building, representing public sector operations.
A government building, representing public sector operations.
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Staff at a Government department are being given increased access to counselling services as fresh job cuts are proposed, according to an internal restructure consultation document leaked to Newstalk ZB.

The document, given to staff at the Department of Internal Affairs (DIA), shows the agency is looking at a net overall reduction of 28 roles in its community operations group - which provides grants and advice to charities and community organisations.

“There are currently 116 permanent positions established in Community Operations. The changes proposed in this consultation document, including removal and creation of positions, would reduce our total number of positions to 88, a net overall reduction of 28 positions,” the document reads.

The agency told Newstalk ZB the proposal was designed to “meet the diverse needs of New Zealand communities and ensure that there is an ability to meet New Zealanders’ increasing demands for digital solutions and self-service approaches alongside more traditional approaches of engagement”.

The consultation document begins with a note from Aiolupotea Sina Aiono, DIA’s general manager of community operations, thanking staff for “continued dedication to the delivery of public services to communities across the country”.

The DIA document said there were weaknesses in documentation and assurance, which needed to improve.

Workers were told the department has identified “based on internal work and external advice” that the way its community operations team works is “no longer fit for purpose”.

“As stewards of public funding, we must be able to demonstrate that decisions are properly authorised, well evidenced, transparent and able to withstand public scrutiny. These requirements do not need to come at the expense of quality public services,” staff were told.

Workers were also advised recent reviews highlighted the need to strengthen the team’s ability to “operate as a trusted, effective and sustainable administrator of public funds”.

“Key challenges identified include unclear accountabilities and decision-making responsibilities, complex processes, inconsistent data and reporting, and opportunities to strengthen governance, controls, and strategic oversight. Independent reviews have also highlighted weaknesses in documentation, decision traceability, and assurance arrangements, reinforcing the need for improvements across the funding administration system,” the agency said in its internal document.

“At the same time, the broader public sector environment is placing greater emphasis on productivity, financial sustainability and delivering services efficiently within constrained fiscal settings,” the paper read.

DIA staff were told there was a need to strengthen the team's ability to operate as a trusted administrator of public funds.

Workers were advised the changes being proposed were designed to bring about clearer leadership and accountability, and would consolidate services to be based in Auckland, Wellington and Christchurch.

It is proposed the team’s office presence in the regions be “removed”.

The agency admitted it was a “significant” proposed change and informed staff it would have “change and wellbeing initiatives in place” to help workers navigate it.

“It is important that you look after yourself and your colleagues as we work through the change, and I encourage you to make use of the wellbeing support available to you as outlined in Section one of this document. My continued focus is on supporting you as we navigate this process,” staff were told.

The agency added it was expanding its EAP services to “enable kaimahi [staff] to access a broader range of support during the change”.

Staff were informed one-on-one leadership coaching and leader workshops were also available, alongside wellbeing workshops “focussed on providing tools, frameworks and guidance to help our people navigate the change”.

EAP, or employee assistance programme, support is being expanded.

The agency told staff it aims to redeploy those set to lose their jobs.

“Employees who are not reconfirmed will be considered for reassignment,” the paper read. “Affected employees who are not reassigned will be consulted individually about other options. If no other options are identified, notice will be given and redundancy provisions apply.”

Workers are also being given the option of voluntary redundancy.

The document said DIA aims to announce final decisions on October 21, with a new structure starting on October 30.

Sina Aiono told Newstalk ZB the agency was focused on “ensuring it remains a trusted, effective, and sustainable steward of funds that continues to deliver high-quality services”.

“Proposed changes would consolidate services to three regional zones, with an evidence-based approach aligning staffing levels with community need.”

Sina Aiono added the proposal requires frontline staff attached to each regional zone must be within their relevant zone, ensuring knowledge “can remain suitably localised”.

“Community advisors may also work remotely in the regions, in accordance with DIA’s flexible working guidelines,” Sina Aiono added.

On wellbeing, the agency spokeswoman said: “DIA offers a range of wellbeing support options, such as EAP, to staff. During change processes, it is common practice for wellbeing options to be tailored according to the specific change or business group that is affected.”

The Public Service Association said cuts should not take place this close to the 2026 general election.

Azaria Howell is a multimedia reporter working from Parliament’s press gallery. She joined NZME in 2022 and became a Newstalk ZB political reporter in late 2024, with a keen interest in public service agency reform and government spending.

PAN's pipeline reviewed approximately 1 open sources for this article. No human editor reviewed this article before publication.

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