This paper discusses the issues and problems associated with reengineering the bureaucracy in the Philippines. Reorganizing the bureaucracy has been on the agenda of every administration since the 1940s, with various names such as streamlining, reorganization, or reengineering. The overarching reason for these reforms is to reduce the wage bill, which has crowded out resources for vital social services. However, data shows that past attempts have failed, as personnel services continue to consume a large portion of the budget. The number of personnel has grown while the delivery of government services remains dismal. In 2004, President Gloria Macapagal-Arroyo issued Executive Order No. 366 to rationalize the government bureaucracy. This paper discusses issues and concerns related to this attempt to overhaul the country’s century-old bureaucracy.