The Ecuadorian authorities confirmed the dismissal of 5,000 public staff and merged a number of ministries as a solution to lower prices and handle its worsening monetary place.
President Daniel Noboa’s administration introduced that the variety of ministries would drop from 20 to 14, slicing 41% of govt workplaces. Secretariats had been additionally decreased by two-thirds.
Solely administrative and administration employees misplaced jobs; medical staff, lecturers, police, and troopers stored their posts. These sweeping adjustments got here after Ecuador’s financial system shrank by 2% in 2024, placing strain on the federal government to spend much less and stabilize rising debt.
Official figures present this restructuring will save the state beneath $50 million a 12 months, a small proportion in comparison with the nation’s $30 billion price range, however is a component of a bigger push to repair public funds and fulfill situations from the Worldwide Financial Fund.
The federal government wants about $6 billion in broader financial savings to steadiness its books and hold outdoors loans coming. The main authorities ministries for transport, tourism, surroundings, and social companies had been consolidated.
Providers like emergency response and the jail system now fall beneath the Inside Ministry. The federal government says these steps will make public companies less complicated, sooner, and extra sincere, and hopes reform will unencumber future funds for applications that matter to strange individuals.
Labor unions voiced alarm over job losses and the danger of strikes, however the authorities maintains these adjustments are wanted to modernize state operations, struggle corruption, and reassure lenders.
Official information confirms the figures and scope of this restructuring. Ecuador faces robust monetary occasions. These job cuts and mergers sign a shift to a leaner, extra disciplined authorities, as leaders attempt to restore stability and investor belief beneath heavy financial pressure.
