MARK McGowan has unveiled a major shake-up of Government departments and confirmed large numbers of rank and file public servants face job losses in coming months and years.

In a major announcement Friday morning, the Premier said he would reduce the number of State departments from the current number of 41 to 25 by the middle of the year through amalgamations as part of efforts to drive a more “efficient” public sector.

As previously promised, Mr McGowan said new department heads would be instructed to deliver a 20 per cent reduction in the 521 members making up the top levels of the public service.

But the Premier also flagged deeper job losses across the public service.

During the election campaign Labor had promised to make $750 million in savings from the public sector, but the Premier said the deterioration in the Budget meant bigger cuts were needed.

“Over time there will be less positions across the public sector,” Mr McGowan said.

“Now that’s a tough thing to say. That’s a tough thing to do.

“We obviously have an environment out there where there are high levels of unemployment.”

He was unable to say exactly how many jobs would be lost over time, or to detail the savings that would be made in amalgamating departments.

He said the Government was running a massive deficit and was having to deal with large levels of debt.

The Premier also confirmed the Government was looking at a so-called “efficiency dividend” for the public service, meaning departments would likely have to fund other cuts to resourcing.

Mr McGowan said other cuts at the fringes were on the table, including cutting overseas trade offices such as the one WA has in London.

Mr Mc Gowan said WA had more departments per head of population than most states in Australia.

Among the changes to departments, the Department of Child Protection will be rolled into the Department of Community Serevices.

The Road Safety Commission will be pushed into WA Police and the Department of Commerce will be slotted into the Department of Mines, Industry Regulation and Safety.

The Department of Justice will now incorporate the Attorney-General’s office as well as the Department of Corrective Services.

Some departments such as the Department of Treasury will also have a change of duties, assuming responsibility for Economic Reform and the Public Utilities Office.

The Department of Premier and Cabinet will assume control of Aboriginal Affairs.

The Premier said the Government had made no decision to wider pay freezes across the public sector, but added that “saving money across government is something we need to do”.

The Premier said the Public Sector Commissioner would be contacting directors general this afternoon to advise whether they had lost their jobs.