Premier Campbell Newman says the Queensland Government is past the halfway point in its public service redundancy program.
He says about 7,800 jobs have been cut from a reduction target of 14,000.
Mr Newman says redundancy payouts have been generous.
"People who've served for a period of time can actually get very significant payouts," he said.
"And they are bona fide redundancy payouts, so they're taxed concessionally as well.
"That's cold comfort if you've lost your job, I acknowledge that.
"But they are generous and they're designed to be generous so that people can get a new position.
The Together Union says it will be a dismal Christmas for public servants facing the axe in Queensland Union spokeswoman Julie Bignell says people would rather have a job.
"It's going to be a rotten Christmas for all those public sector workers who still don't know whether they're going," she said.
"Obviously the target for the Government is 14,000 workers - 4,000 of those in the health service.
"It's a miserable Christmas for them and it's a miserable Christmas and new year for those people who rely on those services in the community."