After concluding a closed meeting on the new budget lasting several days, Saxony's state government has agreed to cut 8,773 jobs among state employees by 2040 in order to improve the state's financial situation. There will be no redundancies, said Finance Minister Christian Piwarz (CDU) in Dresden. The reduction is to be achieved solely through retirements.
According to the information provided, employees of the state and Saxon state-owned companies will be affected. The number of jobs is set to fall to around 80,000 by 2040. The background to this is a financial shortfall of currently around 2.3 billion euros for the next two years as well as increasing expenditure and decreasing room for maneuver in the coming years.
In addition, the state government is planning new debt of 1.4 billion euros over the next two years, half of which will go directly to the municipalities in the state. Minister President Michael Kretschmer (CDU) said that this should keep the state and municipalities capable of acting. "We can ensure that the essentials continue to be regulated."
