Russia will sack 20 percent of the country’s public sector workers to save more than one billion euros.
Some 100,000 civil servants will lose their jobs under plans announced by President Dmitry Medvedev.
The cuts will be made within the next three years.
Medvedev said the move would also help tackle inefficiency in Russia’s public services.
“Our goal is not just to cut the number of civil servants by 20 percent,” he said.
“We also want to increase the effectiveness of their work and of the government bodies where they are employed.”
The Russian president added that “periodic reductions are necessary” to stop the public sector becoming overstaffed.
Earlier this year, Medvedev signed into law a series of police reforms.
Entry requirements were toughened and salaries were raised in a policy designed to root out corruption.