Nearly 60 city employees to lose their jobs
Tuesday 25th August 2026 on 15:01 in
Iceland
Nearly 60 city employees will lose their jobs as part of organisational changes at at least four city service centres, mbl.is reports. The changes are expected to save the city about 900 million Icelandic krónur a year, according to the news site’s sources.
The city council held an additional meeting on Tuesday morning to decide on the organisational changes.
“I can confirm that the city council met this morning because of extensive changes to the administrative structure that will affect jobs at the city,” Mayor Hildur Björnsdóttir said.
“This is a difficult day. The process is not finished, and we are emphasising that we first speak with the employees affected by the changes. We will issue a statement later today, once we have informed our staff. We ask the media and others to understand and respect that decision,” she said.
Björnsdóttir added that the leaders and spokespeople of the governing majority would be available for interviews later on Tuesday, after the statement on the organisational changes had been issued.