Health NZ plans to significantly reduce staff in its IT department to save costs and improve efficiency. According to official data, the IT department originally intended to cut around 1,750 positions but was reduced to 1,460 key roles after legal challenges.

The cuts will involve multiple levels: 758 job vacancies will be eliminated, 447 positions will be eliminated with reassignment opportunities, and 610 roles will be eliminated while encouraging job seekers to apply for the replacements. Health NZ stated that these changes aim to optimize IT services, support regionally focused operations, and ensure sustainable development.

However, Public Service Association (PSA) has warned that this decision could pose threats to patient safety and system security. IT department staff play a crucial role in building modern, secure healthcare systems, including ensuring clinicians can access electronic records, maintaining outdated systems, and integrating national IT infrastructure.

Despite expecting the cuts to save approximately $10 million annually, PSA argues that reducing the workforce too deeply and broadly could negatively impact New Zealand's commitment to providing timely, high-quality medical services. Health NZ originally planned to achieve cost savings of about $38 million through this initiative.

The staff reduction is part of a series of reforms within the health department aimed at improving efficiency and adapting to changes. While concerns have been raised, Health NZ has expressed efforts to support frontline clinicians and patients.