“We question how MSD can continue to maintain its systems with such deep cuts to this workforce.

“These cuts are ultimately about saving money, not keeping vital computer systems running 24/7, and if problems emerge because of short staffing, New Zealanders who depend on various benefits being paid on time and other support will be impacted.

“We saw the same thing happening with the data and digital team at the Ministry of Health,” Fitzsimons said.

The PSA has also tangled with the Government over digital safety team job cuts at the Department of Internal Affairs.

The Herald was told the following IST team roles would be eliminated or reduced:

Voice confirmed the list, bar the final three roles, where she said people would be appointed directly into a new position.

“The work that is done by people in these positions will continue to be done, because new positions are also proposed to be created,” she said.

“While there are proposed to be fewer roles in the IST team, there are proposed to be additional roles in the Services for the future programme,” Voice said.

Asked for examples of other new roles that would be created, Voice said they would include resourcing lead, benefits analyst, and business rules designer. There would also be new leadership roles.

“We recognise this is an unsettling time for those affected by the change proposals and, where possible, we will be looking to redeploy people in impacted roles into new opportunities across the organisation,” Voice said.

None of these positions are due for replacement by AI.

Budget 2025 included $67.59 million for MSD’s Services For the Future programme, described as “a multi-year transformation programme”.

“In the Improvement, Systems and Technology area we are consulting on changes to ensure this area has the necessary capabilities and ways of working to deliver modern technologies and services for the future,” Voice said.

“These are proposals and final decisions have not yet been made.”

Last year, MSD outlined plans to reduce its workforce by 712, or 7.5% of its 9842 fulltime staff, as part of the Government’s broader drive to cut 6.5% to 7.5% in spending across most departments and agencies.

“The Government is to blame for these cuts with constant expectation on the public service to do more with less,” the PSA’s Fitzsimons said.

Social Development Minister Louise Upston referred questions to MSD.

Chris Keall is an Auckland-based member of the Herald’s business team. He joined the Herald in 2018 and is the technology editor and a senior business writer.