The Savings

New Zealand announced it will cut 14% of its public service jobs over the next four years to save money.
(The word "save" usually applies to things you want to keep. You save a document. You save a drowning person. You save a building from a fire. Here, it was applied to money. The things that were not saved were the 14%.)
The positions being eliminated span health, housing, education, and public administration. The government described this as "fiscal sustainability." The people who administer health, housing, education, and public administration were not consulted on whether this is sustainable.
The savings will accrue to the government. The people producing the savings will not work for the government.
The announcement did not use the word "layoff." It used "cut," "reduce," and "save." These are accurate. One of them is also what you do to things you want to keep.