Milei's government has already dismissed 42,034 state employees and saved USD 1.635 billion.

During the first 15 months of President Javier Milei's term, a total of 42,034 public employees and inefficient workers left their positions within the national public sector.

This figure represents a reduction of 8.4% of the state workforce and constitutes one of the largest adjustment processes in Argentina's administrative structure in recent decades.

The information was officially communicated this Friday by the Ministry of Deregulation and State Transformation, headed by Federico Sturzenegger. The measure is part of Milei's Government plan to cut state spending and move toward fiscal balance. According to the report released by the ministry, the decrease in the number of public employees implies an estimated annual saving of USD 1.635 billion.

The analysis details that the layoffs are distributed across three major areas: the National Public Administration (NPA), state-owned companies, and the personnel of the armed and security forces.

The NPA was the most affected, with a reduction of 11.8% in its workforce. It was followed by state companies, which recorded a 15% decrease, and the defense and security sector, with a smaller reduction.

Within the NPA, the cut was applied to all types of employment relationships. Permanent and temporary staff were reduced by 6%, while those contracted under the Framework Law (Law 25.164) fell by 18.6%.

However, the most drastic contraction occurred among workers under the LOYS regime —self-employed workers framed in Decree 1109/17—, which were reduced by 50.7% during the same period.

The savings

The official document indicates that, taking as a reference the weighted average salaries of February 2025 according to the type of contract, the savings in terms of salaries reach USD 817.5 million per year.

To this must be added the indirect costs of the State's operation —such as infrastructure, services, supplies, and equipment— which, according to the Government's own calculations, represent a value similar to each worker's salary. Therefore, it is estimated that the total cost of each state employee doubles their salary, raising the projected savings to USD 1.635 billion annually.

Breaking down the savings in salaries according to the type of contract, the largest cut came from layoffs under the Framework Law, with an impact of USD 216 million.

It was followed by reductions among permanent and temporary staff, which caused savings of USD 190 million, and then LOYS contracts, with USD 61 million.

If the indirect costs associated —such as infrastructure, services, and other resources— are added, these figures double, reaching USD 432 million, USD 380 million, and USD 122 million, respectively.

The steps to follow

Looking ahead, Milei's Government assured that the reduction process was designed strategically and that it will continue throughout 2025. From the Ministry of Deregulation, they announced that in the next phase, they will proceed with the elimination of areas considered non-essential within the State, in addition to carrying out a complete review of administrative structures to eliminate duplications, overlapping functions, and retain only those departments that have a real impact on public management.

This downsizing of public employment is part of a broader program aimed at reducing state spending. The official report also highlights that the improvement in the fiscal balance recorded during the first months of 2025 is largely due to the drastic reduction in primary spending.