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Reykjavík to lay off dozens in new cost-cutting drive

Tuesday 27th October 2026 on 12:15 in Iceland

layoffs, public sector, reykjavik

Dozens of Reykjavík city employees will be laid off today as the municipality moves ahead with further cost-cutting measures, mbl.is reports.

The measures were discussed at a closed extraordinary meeting of the city council this morning, which ended at about 10 a.m. Details of the meeting will remain confidential until the layoffs are completed today.

According to mbl.is sources, the layoffs will affect every city department except the education and leisure department and the welfare department. In August, 86 people were laid off across those two departments. Of those, 32 were offered new positions and 29 accepted.

When cost-cutting measures were approved earlier, city council president Björg Magnúsdóttir said further measures were ahead.

Source 
(via mbl.is)