Romania’s Development Ministry to cut more than 500 positions in cost-cutting program

Romanian development minister Cseke Attila recently announced that the ministry he leads will be reorganized by cutting more than 500 positions, including managerial ones, and two of its subordinate institutions.

The cuts are part of a wider trend among state institutions seeking to lower their operating costs. "Through this measure, we are reducing staff by over 16%, cutting 512 positions, of which 74 are currently occupied, eliminating 21 managerial positions, and reducing the number of Board of Directors members by two-thirds," said Cseke Attila.

Attila also pointed out that from the current 966 positions in the Ministry of Development, the National Housing Agency, and the National Institute of Administration, only 808 positions will remain.

Beyond the jobs cut, the Development Ministry will also do away with the National Housing Agency, or ANL, and the National Institute of Administration, or INA. The first is charged with building social housing, while the latter provides professional training for public officials and public sector employees.

According to Attila, dissolving the two institutions and integrating them into the ministry will save RON 22.6 million annually (EUR 4.5 million).

"In the first 100 days of my ministerial term, I settled all inherited debts amounting to RON 6.7 billion, established transparent investment prioritization criteria for beneficiaries and builders, doubled the absorption rate of European funds from PNRR, imposed respect for citizens by eliminating certain fees for public services, and revitalized the seismic safety and nursery construction programs to support families. Now, we are making the Ministry of Development more efficient," declared Cseke Attila in a press conference announcing the ministry's reorganization, according to News.ro.

The minister added that the institution will continue to drive Romania’s development, despite going through a cost-saving and streamlining process.

The Ministry will also “align” the salaries of directors at another institution, the National Investment Company, with the salary system for public employees, and the seniority and management allowance will not exceed 40% of the base salary. Annual bonuses will be capped at two gross salaries per year. "Neither the Ministry of Development nor its subordinate institutions have had or will have retirement bonuses. These existed only at CNI until now, but we are eliminating them," Cseke Attila added.