Argentina’s new president lays off 5,000 government employees hired in 2023

Argentina’s new president lays off 5,000 government employees hired in 2023, per AP.


Argentina's newly inaugurated President, Javier Milei, declared on Tuesday that his administration would not renew contracts for over 5,000 employees hired earlier in the year before he assumed office.

This decision is part of a comprehensive plan for cutbacks and devaluations outlined by the right-wing libertarian leader since taking office on December 10, aiming to revitalize Argentina's struggling economy.

Contracts for government employees hired before 2023 will undergo a review, with the 2023 cutoff seemingly targeting the practice of outgoing presidents increasing payrolls in their final year.

Anticipating inflation to reach around 200% by year-end, Milei has committed to reducing government regulations and payrolls, and opening the door to the privatization of state-run industries to stimulate exports and investment.

While these cutbacks have sparked protests, Milei remains determined to implement his agenda, stating, "The goal is to start on the road to rebuilding our country, return freedom and autonomy to individuals, and begin transforming the numerous regulations that have hindered economic growth."

Previously announced changes, totaling around 300, signal the potential privatization of many government-owned companies and the relaxation of protections for renters, employees, and shoppers.

These measures include a 50% devaluation of the Argentine peso, reductions in energy and transportation subsidies, and the closure of certain government ministries. They come against the backdrop of surging inflation and increasing poverty.

Milei, a 53-year-old economist who gained prominence on television for his passionate criticisms of the political establishment, secured the presidency with the support of Argentines disillusioned by the economic crisis.