The Chicago Public Schools are eliminating more jobs to deal with a massive budget gap.

The district said it is cutting ties with private custodial contractors. More than 1,200 custodians got layoff notices on Friday.

CPS said it now plans to rehire 750 of those custodians directly as district staffers.

CPS said the move could save the district $40 million a year, as the district faces a $734 million budget deficit headed into Fiscal Year 2026.

The district laid off about 250 lunchroom workers and 100 crossing guards earlier this summer.

The district also laid off 400 teachers this summer. In announcing those layoffs in July, CPS said they were due to "delays in the budgeting process."