Nearly 1500 more jobs may be cut at Health NZ - Te Whatu Ora, the public sector union says.
That was on top of more than 500 voluntary redundancies that had already been accepted. RNZ has tallied 2042 jobs are now gone or proposed to go at the agency.
The Public Service Association said about 700 of the roles to go were currently vacant because of a freeze on recruitment.
They would include 47 percent (1120 jobs) of the entire Data and Digital group and 24 percent (358 roles) of the National Public Health Service.
Te Whatu Ora is the country's largest Crown entity, employing more than 80,000 staff, according to its annual report for 2022/23.
That includes frontline staff employed in hospitals. Te Whatu Ora said clinical roles were not being cut.
National health sector lead Ashok Shankar said the cuts are another "shameful attack on an already stretched public health system that will end up hurting the health of all New Zealanders.
"Every day New Zealanders are experiencing a health system that is failing to give them the care and support they need - these cuts will only make that worse.
"The government has chosen to prioritise billions of dollars in tax cuts for landlords and big tobacco, rather than investing where the real need is - improving the health and wellbeing of New Zealanders. Its priorities are all wrong."
The health agency's boss, Margie Apa, said the organisation was "resetting" and in the next few weeks it would consult with staff on a number of restructure proposals, with more to come in the new year.
On this week's list is four teams - Data and Digital, the National Public Health Service, Hauora Māori Health Service and Pacific Health.
"We know working through these changes will be unsettling for affected staff and acknowledge a large number of positions are proposed to be removed," Apa said.
National campaigned on slashing "back-office expenditure" as part of its "Back Pocket Boost" tax plan. Finance Minister Nicola Willis asked public service departments to identify savings options of either 6.5 or 7.5 percent. (Departments that had grown by more than 50 percent since 2017 were allocated the higher percentage.)
Prime Minister Christopher Luxon said savings "across the public sector" were being reinvested in frontline services and tax reductions.
At Budget 2024, the government said it has met its baseline savings target of $1.5 billion average operating savings per year.
RNZ understands some teams have been called into a hui on Wednesday afternoon to learn what is being proposed.
"Te Whatu Ora has made some good progress towards living within our means, but we are still spending more than we have in our budget," Apa said.
"We are also taking the opportunity in our reset to devolve more functions to regions to strengthen frontline clinical delivery to patients and communities."
A total of 568 staff have already accepted voluntary redundancy, which frontline clinical staff were not eligible for, she said.
And other cost-cutting measures had already been taken, including seeking "the best value" for the products it purchased, and pausing or changing projects that may not provide immediate benefits, Apa said.
The changes would strengthen frontline clinical delivery and help Te Whatu Ora achieve national health targets, she said.
Te Whatu Ora earlier this week would not say how many roles could be impacted, but confirmed no final decisions would be made before Christmas.
But on Wednesday, Apa said the agency would "publish monthly updates on our people changes".
