Hundreds of prison staff will lose their jobs as units in Waikeria, Tongariro-Rangipo and Rimutaka Prisons are closed.
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The Department of Corrections said the closure of the prison units will coincide with the opening of the new 960-bed Auckland South Corrections Facility.
The new prison at Wiri, South Auckland will be run by private company Serco.
Overall, the number of beds for prisoners will increase by 433 this year, the department says, however, most of the 250-plus jobs at the new Auckland prison are already filled.