DENVER, Colo. — More than 170 Denver city workers will no longer be employed with the city as it tries to plug a $200 million gap in next year’s budget.
The City and County of Denver said it is laying off 171 employees, eliminating 665 vacant positions, and finding new funding sources for 92 positions.
In total, 928 positions (8.4% of the total workforce) is being impacted by the budget gap.
The city said the reductions would save $100 million.
These details were outlined in a letter Scripps News Denver obtained and sent to city employees on Monday. The city also sent the same details in a press release.
The number of layoffs announced Monday is somewhat lower than what some city employees anticipated after Mayor Mike Johnston announced in May that budget shortfalls had him considering layoffs.
However, the city said Monday that its efforts to slow and freeze hiring and reduce the size of government have minimized the impact on employees and public services.
These layoffs are a result of a projected $200 million budget deficit for 2026 due, as Denver officials said, to flattening city revenues driven by national economic uncertainty and rising costs.
The city said that the 171 layoffs represent only 1.6% of the city’s workforce.
Denver city officials said the measures they took Monday were necessary because nearly 70% of the city’s general fund budget goes toward personnel costs.
Employees impacted by the layoffs will receive 30 days of paid administrative leave, two to eight weeks of severance, 60 days of healthcare coverage, and outplacement services to help employees find jobs.
Denver City Council members reacted to the layoffs on Monday afternoon.
"It's never easy to get a phone that says you no longer have a job," said Denver City Council President Amanda Sandoval.
"This really hurts," said Denver City Council Member Serena Gonzales-Gutierrez. "Families are going to be hurt because of financial decision of the city."
"I just want to give my thanks to those individuals, 171 folks who gave incredible sacrifices to the city over the last several years," said Denver City Council Member Jamie Torres.
Scripps News Denver spoke with the president of Local Union 158, Mike Wallin, on Sunday ahead of Monday's announcement.
He has worked with the City of Denver since 2011 and said there is a sense of pride in the work accomplished while at the city. But he had many sleepless nights leading up to this week.
"A lot of employees are manifesting this stress, physically, emotionally, and it's very disconcerting," Wallin said. "It's just cruelty."
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