Auckland Council spends $12.5m cutting staff

8:50 pm on 3 October 2017

The Auckland Council has spent $12.5 million in the past year laying off staff or paying for early exits.

Most of the money went to 227 council workers made redundant in restructuring in IT, libraries and customer services or community facilities.

Forty seven lay-offs as a major project wound down cost $2.4m, with the library restructure costing $1.7m when 60 were made redundant.

The council and its agencies paid $1.5m of the total to 47 staff who received severance payments for early exits.

One senior council manager was paid $405,000 in a confidential settlement, and one at an unnamed council agency was paid $275,000.

The council said most of the departures were part of transformations that would result in future savings.

At the weekend, the council's chief executive Stephen Town said $405,000 paid to the senior council manager was a significant sum, but he was confident the correct process was followed.

"Any severance payment made by Auckland Council is done with great care.

"While we aim to resolve any issues within the terms of employment agreements, there are occasions where a severance payment is the most pragmatic option," Mr Town said.

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