Finance Minister Nicola Willis makes a pre-Budget announcement, slashing the number of public service jobs.
An economist says more than 3500 jobs could be cut in Wellington, and the capital is set to "bear the brunt" of a major shake-up to the public service.
Some residents and cafe-owners fear the government's plans will crush the city's morale, leaving it a "ghost town".
But senior ministers from Wellington insist the capital is more than a "boring" hub for bureaucrats, with the mayor pushing the city's tech sector.
3700 jobs may go in Wellington alone - economist
