Reykjavík approves restructuring that will cut 54 jobs

Reykjavík City Council has approved extensive changes to the organisational structure of the city’s welfare, education and leisure services, with 54 employees set to lose their jobs, mbl.is reports.

The new organisational structures will take effect on 1 September 2026. A total of 86 employees will be affected, with 32 offered new or modified positions. Among the jobs being eliminated are 22 positions linked to the city’s reception of refugees, as the relevant agreement expires at the end of the year.

The changes will simplify management structures, reduce the number of managers and organise services increasingly by professional field rather than by geographical neighbourhood divisions. The services of service centres, leisure centres, Keðjan and Virknihúsið will be incorporated into the new structure.

The city said the changes would clarify responsibilities and shorten lines of communication. Children and families will be able to access services in one place, while the main emphasis will be on local services for residents in neighbourhoods, schools and leisure activities.

Implementation is scheduled to be completed by 1 January 2027. From the beginning of next year, child and family services, as well as education and leisure services, will be based at Borgartún 12 to 14. Social and housing services will be based at Bíldshöfði 20.

The city estimates that the changes will generate annual savings of about 900 million Icelandic krónur once fully implemented. The savings are expected to result from reducing the number of positions, restructuring management and lowering housing costs.

The proposal passed by five votes from council representatives of the Independence Party, Centre Party, Viðreisn and the Progressive Party, against two votes from representatives of the Social Democratic Alliance.