Overview of Workforce Reduction Under Javier Milei
Since assuming office in December 2023, Argentine President Javier Milei has implemented significant workforce reductions within the National Public Administration and state-owned enterprises, resulting in a 17% decrease in registered employees. According to economist Nadin Argañaraz, this downsizing has been one of the most critical developments in the management of state human resources during his tenure.
Statistics Behind the Reduction
As of October 2025, the number of employees had dropped to 282,570, down from the 341,473 registered at the start of Milei’s administration. This represents a loss of 58,903 positions, as outlined in reports from INDEC. Argañaraz noted that the reductions occurred consistently, with a monthly decline observed throughout the period.
Breakdown of Workforce Cuts
The reductions affected various segments of the public administration:
- Centralized Administration: Responsible for 26% of the total decrease, losing approximately 15,519 positions.
- Decentralized Administration: Accounted for 33% of the layoffs.
- State-Owned Enterprises: Contributed to 34% of the workforce cuts.
Entities Affected by Layoffs
Among the hardest-hit organizations were:
- Official Mail of the Argentine Republic SA: -5,114 workers
- Railway Operator SE: -3,353 workers
- AFIP (now ARCA): -3,112 workers
- CONICET: -1,958 workers
- ANSES: -1,548 workers
Several organizations were also completely dissolved, including the SACPEM Railway Human Capital Development and the National Institute of Family, Peasant and Indigenous Agriculture, further compounding the impact of workforce reductions.
Future Plans for Further Reductions
Looking ahead, the government is poised to deepen these cuts even further. Plans for 2026 indicate potential layoffs affecting another 10% of the total workforce. With an aim to improve efficiency and reduce public expenditure, the administration is set to scrutinize staffing at over eight agencies, evaluating their operational needs thoroughly.
Implementation Timeline
According to executive sources, the latest payroll reductions will be enacted primarily during the first half of 2026, coinciding with the expiration of numerous contracts that cannot be renewed.
As Javier Milei continues to execute his controversial policies, the impact on public services and employee morale remains a significant and contentious issue in Argentina.