Mornington Peninsula Shire Council has confirmed a major organisational restructure that will result in up to 48 staff redundancies, following weeks of speculation about widespread job cuts.
Chief Executive Officer Mark Stoermer announced the “realignment” on Thursday, describing it as a necessary step to deliver long-term financial sustainability and improved customer service.
The restructure follows Council’s adoption of its 2025/26 Budget in May, which included $5 million in employee expense reductions and a further $5 million in service efficiencies.
“Realignment” to streamline leadership
Mr Stoermer said the new structure would streamline leadership, improve efficiency and ensure leaders were managing appropriate numbers of staff.
“The new structure will set the organisation up for the long-term and deliver improved efficiencies in service delivery,” Mr Stoermer said.
“I acknowledge that redundancies are unavoidable and necessary to ensure financial sustainability. We will be saying good-bye to staff who have worked hard, and I want to acknowledge their contribution to the organisation and the community.”
The CEO said redeployment opportunities were being identified for some affected staff, with consultation now underway and the restructure expected to be finalised by mid-September.
Mayor backs restructure
Mayor Anthony Marsh backed the changes, describing the review as “thorough” and “compassionate”.
“Whilst decisions about individual staff are the responsibility of the CEO, it is important that the process is fair and compassionate,” Cr Marsh said.
“I thank the CEO for leading a thorough review that positions the organisation to significantly improve the way we serve our community while remaining financially sustainable. We are grateful for the dedication and contribution of all staff, and I look forward to how these changes will help us better meet the needs of our community into the future.”
Community concerns remain
The announcement confirms earlier reports that large-scale redundancies were imminent. Council has not released details of which departments will be most affected.
As previously reported by STPL News, insiders had described the mood inside the organisation as “like a morgue” in the lead-up to the announcement. The restructure also comes amid declining community satisfaction scores, with the 2024/25 annual survey showing overall performance down to 6.3 out of 10, below both metropolitan and interface council averages.
The Shire says the new structure aligns the organisation with the Council Plan and broader strategies, with the aim of building a “more effective, efficient and customer-centred” organisation.
Financial morons
Mornington Shire Council you are a joke. You don’t care about the little people within your shire all you worry about is lining your own pockets again and again. Disgusting.