Hafnarfjörður to cut 23 municipal jobs

Hafnarfjörður municipality will eliminate 23 jobs as part of a cost-cutting plan expected to reduce annual operating costs by 330 million, mbl.is reports.

The jobs represent 21.6 full-time equivalents. Three employees whose roles are being removed will be offered other positions with the municipality, bringing the net reduction in staffing to 18.6 full-time equivalents. The cuts affect management, specialist and support roles across the municipality.

The municipality will also restrict hiring. All recruitment for positions outside core services will be referred to a recruitment committee.

Department budgets will be reduced in the 2027 budget by the amount of the measures’ expected impact that year. Some of the savings are expected to take effect in 2027 as payments related to staff departures are completed, with the full annual reduction expected from 2028.

The measures aim to strengthen the municipality’s finances, ensure regular income covers legally required services and other operating commitments, and create room to meet loan repayments and finance investment sustainably.