The French Polynesian government says the public service will have to shrink by 30 percent by 2014.
The president, Gaston Tong Sang, says consultations will be launched before the end of the year to get the public's input.
Walter Zweifel reports.
"The massive cuts have been anticipated after a French report found excessive spending in the territorial administration. This has prompted Paris to demand that the report's recommendations be implemented before further loans are released. An official tasked with overseeing the process says the financial constraints are now such that services will have to be disestablished. She says the discussions will determine what can be improved and at what cost some services can be retained. The reforms will be accompanied by changes to the electoral system in a bid to end the political instability which is blamed for a decade of stagnation and the recent economic decline."