Denver city employees to learn of layoffs Monday amid budget shortfall

Some Denver city employees will learn Monday that they are being laid off as the city works to address major budget shortfalls.

Mayor Mike Johnston said layoffs are needed to help close a $50 million deficit for the rest of this year, as well as a projected $200 million shortfall in 2026. The expected layoffs were announced last month.

According to the city's layoff separation guide, employees who have worked for Denver for 15 years or more will receive eight weeks of pay if they are laid off. After being notified, employees will also get 30 days of administrative leave.

Johnston has emphasized that the city will continue to provide essential services despite the cuts.

"We're going to keep officers on the street. We're going to keep trash getting picked up. We're going to keep our parks and rec centers clean and open," he told CBS News Colorado in May.

The city's executive director of human resources said there is no exact number of layoffs yet, but noted that the total could reach into the hundreds.

Monday afternoon, Johnston's office issued a written statement saying 171 people were laid off and 665 vacant positions were eliminated. An additional 92 workers were shifted from being paid by the city's general fund to "other aligned funding sources."

"These reductions will solve for $100M of our $200M budget gap for 2026," the mayor's office said. "A deficit of this size requires a structural reorganization to prevent this type of budget deficit in the future while continuing to be good stewards of taxpayer dollars. Since nearly 70% of the General Fund budget goes toward personnel costs, eliminating positions was necessary to meet the budget gap."

The city employs about 11,000 people. The mayor's office said it will provide more information about the layoffs, including a department-by-department breakdown later this week.

Mike Wallin, president of AFSCME Local 158, the Union representing Colorado's public service workers, said the union is not only supporting its members who are or will be laid off, but they plan to fight back against the move.

"We are going to hold his feet to the fire, we are going to organize, we are going to hold up our members, unite as members and be there for each other," he told CBS News Colorado on Monday. "Future support for Mayor Johnston is not guaranteed."