Ecuador Cuts 5,000 Public Jobs, Reduces Ministries to Meet IMF Targets

Ecuadorian President Daniel Noboa has initiated a major government restructuring to address the country’s worsening financial situation, including the dismissal of 5,000 public workers and reducing the number of ministries from 20 to 14. This downsizing effort also includes cutting secretariats from nine to three, merging key ministries, and reallocating services like emergency response and prisons under the Interior Ministry to improve efficiency and reduce the state deficit. The layoffs exclude essential personnel such as medical workers, teachers, police, military, and vulnerable groups. These measures aim to meet conditions set by the International Monetary Fund under a $5 billion credit program and are part of a broader effort to streamline government operations and restore fiscal stability. While labor unions have expressed concern over the job cuts, the government maintains the changes are necessary to modernize state operations, fight corruption, and reassure lenders amid Ecuador’s economic contraction. The restructuring follows IMF approval of additional financial support and represents Noboa's first austerity move after his recent reelection.