Finland's social benefits agency Kela will seek to save about 45 million euros over the next three years by means of reducing staff numbers as well as office rental costs.
The majority of staff cuts will affect employees on fixed-term contracts, the agency said, with about 200 people unlikely to have their contracts renewed.
Kela's operating and financial plan for the period 2025–2027 was agreed at a meeting of its board of directors on Tuesday evening, as the agency faces its "biggest budget cut" in decades.
The plan will see Kela share office space or customer service points in some locations with other agencies, such as regional social and healthcare authorities or local municipalities.
In a press release, the agency noted that Kela staff were asked for suggestions on how the 45 million euros in savings could be achieved, and many employees proposed reducing the number of facilities the agency operated from.
"The reduction of office space has already begun. In the coming months, Kela employees will be presented with an extensive plan on the proposed changes," Kela's Director General Outi Antila wrote in the release.
In 2022, Kela employed about 8,600 people.
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