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The focus of this paper is on the civil-service training during cutback management. The impact of the cutback management on civil-service training has not been thoroughly analyzed so far. The paper describes and explains the Estonian case and analyzes its implications for the theory. It is concluded that across-the-board cuts and a decentralized training system will lead to major cuts in training budgets. It is also found that in a cutback environment organizations prefer job-specific training over general civil-service training. Furthermore, in times of budget cuts organizations seek cost-effective training methods and thus provide in-house courses.