Mayor Bass says layoffs averted after labor negotiations, "creative solutions" for next year city budget

Mayor Karen Bass announced a plan to avert layoffs after successful labor negotiations and secured an agreement for the Fiscal Year 2025-2026 City Budget on Tuesday.

At a news conference, Bass was joined by local union leaders to address the looming layoffs that were mentioned in April during her State of the City address. Bass described the layoffs as "inevitable," with 1,600 positions at risk, to help close the city's $1 billion shortfall. 

At the time, Bass said she was willing to take a pay cut and hold off on scheduled raises for her staff members to help the city's budget. Bass said working to close that deficit was "terrifying" for everyone involved in the budget. 

On Tuesday, Bass gave an update that "through creative solutions such as transferring positions to other departments," the initial layoffs proposed had been averted.

"After months of negotiations and problem-solving, I can announce that agreements have been reached to avert all remaining layoffs," Bass said. "This action protects our skilled workforce and preserves City services. I will always fight for the people of Los Angeles – for your rights, for your jobs and for a better future for the next generations."

As part of the plan, Bass said that in June, departments began shifting employees within their budgets "out of at-risk positions and into funded positions that became vacant or to specially-funded positions." She said along with employees securing opportunities to transfer and fill vital positions within the Port of Los Angeles, Los Angeles World Airports and Water and Power Departments, helped save jobs.

Bass said labor negotiations also resulted in agreements with three key union groups.

"Our collaboration landed this historic agreement, and it's one that we're extremely proud of," said David Green, President and Executive Director of SEIU Local 721. "Together, we're saving critical frontline positions, boosting revenues through joint efforts with city leadership, and strengthening the vital services Angelenos depend on."

Bass also attributed other work her office has been doing since she was sworn in to build "successful strategies."

"I want to thank Mayor Bass for bringing us all together this morning. We are grateful for all of the hard work that has gone into ensuring that no City employees will be laid off," said Marlene Fonseca, Engineers and Architects Association (EAA) Executive Director. "I look forward to working together proactively to find long-term solutions for maintaining revenues, smart cost-cutting, and sustainable budgeting."