Javier Milei's government is working on a new stage of the state reduction plan, aiming to further reduce the state structure during 2026, and thus continue lowering taxes.
After the recent reorganization, Chief of Cabinet Manuel Adorni and Minister of Deregulation and State Transformation Federico Sturzenegger are coordinating the strategy with which they will seek to move forward on various state agencies. "The chainsaw is constant," they stated from Casa Rosada.
Although the government avoided specifying how many public employees could be involved in this new phase, they let it be known that the reduction would cover "another 10%," which would imply a large-scale cut to the current workforce. The libertarian administration already carries out monthly monitoring to evaluate functions, structures, and contracts, with direct instructions from President Javier Milei to "achieve a more efficient state."
Javier Milei.
Sturzenegger, who publishes monthly on his X account the details of layoffs in the public sector, is preparing a new report for October. According to data released through September, the reduction of public employees, especially Kirchnerist no-shows and activist employees, since the beginning of the administration totals 58,797, including personnel from centralized and decentralized agencies, security forces, military personnel, and employees of state-owned companies.
Meanwhile, a report from INDEC published last Friday showed that the workforce of the national public administration, state companies, and state-owned corporations was reduced by 0.3% in October. The agency revealed that there are currently 282,570 employees in those areas, a number that Milei's government seeks to decrease in the coming months.
In the first two years of the administration, the Executive focused the adjustments mainly on the centralized administration. Now, the focus will shift to decentralized agencies, a broad group that includes ARCA, ANMAT, CONICET, INDEC, ANSES, ENARGAS, INTA, INTI, ENACOM, among others. In these structures, official sources maintain, there is room to deepen administrative reorganization and continue cutting spending.
Javier Milei en New York.
The next wave of reductions could begin in December, when a large number of contracts that would not be renewed expire. In addition, part of the future cuts will be linked to plans to eliminate motor vehicle registries and to privatization projects for public companies that the Executive Branch continues to evaluate.
The measures, they point out in Casa Rosada, will be "imminent" and will be deployed during the first two quarters of 2026, in a context where the government insists that reducing the state is an indispensable condition for continuing to lower public spending and taxes for all Argentines.
