Reykjavík approves reforms affecting 86 employees

Reykjavík City Council has approved extensive changes to the city’s welfare department and school and leisure department, affecting 86 employees, mbl.is reported. Einar Þorsteinsson, chair of the city council and leader of the Progressive Party in Reykjavík, said he did not rule out further measures.

Under the changes, 32 employees will be offered new or modified positions, while 54 will not be offered continued employment.

Þorsteinsson said the proposals followed a lengthy process based largely on an analysis carried out in 2024. He had commissioned external consultants, HLH-ráðgjöf, to review the city’s operations and administrative structure, with particular attention to services for disabled people.

“A comprehensive review of the city revealed significant opportunities to use funds more effectively, strengthen professional work and improve operations through changes to the administrative structure,” Þorsteinsson said.

He said the proposals had contributed to the collapse of the majority he previously led. After that coalition broke apart, he said there had not been sufficient support for radical changes to the city’s operations and administrative structure.

The current majority established an efficiency group, which received the analysis and proposals. The group reviewed financial information and spoke with employees in the city’s neighbourhoods, service centres and institutions.

Þorsteinsson said he was convinced the approved changes would improve services, strengthen professional work and reduce costs. He said the city was addressing the deficit inherited from the previous majority.

The efficiency group will continue its work. Þorsteinsson said all areas were under review as Reykjavík went through a period of change, with the aim of improving frontline services for residents while reducing costs.