Unemployment Insurance Fund to lay off a third of managers
The Unemployment Insurance Fund will cut managers and departments by a third to speed up decisions and lower costs, while continuing service in all counties.
The Unemployment Insurance Fund (Töötukassa) approved a new strategy on Tuesday focused on reducing youth unemployment, improving digital skills among marginalized jobseekers and helping people find work more quickly in cooperation with employers.
"The Unemployment Insurance Fund is also restructuring to redirect more resources toward implementing the strategy. The number of managers and departments will be reduced by a third to speed up decision-making and cut organizational costs. Clients will continue to receive counseling in all counties," said spokesperson Lauri Kool.
As part of the restructuring, departments will be merged: starting next year, the number of departments will drop from 34 to 23. The biggest changes will take place at headquarters where 11 departments will remain instead of the current 19.
In total, the Unemployment Insurance Fund will eliminate 174 positions. Since April, 18 jobs have already been cut. A further 146 positions will be eliminated through the ongoing collective redundancy process, with another 10 to follow at the beginning of next year.
"The needs of jobseekers and employers are more diverse than ever and the Fund must adapt. Downsizing isn't a goal in itself — what matters is that we offer services more quickly, effectively and in a modern way," said board chair Gert Tiivas, adding that greater emphasis will be placed on digital counseling going forward.
Changes are also coming to the management of regional centers. For instance, Lääne and Ida-Viru counties will be managed under a single director, as will Lääne County and the major islands. The largest share of cuts will affect management positions.
About 32 of the eliminated positions are managerial. Due to restructuring in advisory services — and a decline in unemployment along with a growing share of self-directed jobseekers — the number of counselors will also be reduced by 17 percent.
"The most important work is done by those who engage directly with people, who do so with dedication and finish every conversation knowing they've helped someone move closer to their goal — employment," Tiivas said, noting that AI and other modern technologies will soon support both jobseekers and employers.
"To meet our ambitious goals more quickly, we're currently looking for a new board member responsible for modernizing client services," Tiivas added.
According to the Unemployment Insurance Fund, the aim of the reform is to simplify management and speed up decision-making, while also investing in the development of better and more modern client service channels.
Since April, 18 jobs have been eliminated. The collective layoff process that began on Monday will cut 146 positions, the largest share, 34, at headquarters. A third wave of layoffs is planned for early 2026, when another 10 positions will be eliminated.
Before the layoffs, the Unemployment Insurance Fund had a staff of 900.
--
Editor: Mari Peegel, Marcus Turovski
