Denver Mayor Mike Johnston says "layoffs are over" after 169 workers lose their jobs
Denver Mayor Mike Johnston addressed city workers in an online town hall on Wednesday morning and announced, "layoffs are over." That town hall happened just before Johnston spoke to the public about those layoffs and what the city is facing in a budget shortfall.
On Monday and Tuesday, the city notified 169 city workers that their jobs were being eliminated and they were being laid off as part of an effort to close a $200 million budget gap in 2026. That number was previously 171 employees but the mayor's office clarified on Wednesday that two people decided to resign, putting the total number of layoffs at 169.
"Our layoff wave is over, it's complete," Johnston said during the hour-long forum. He went on to say that if the economy recovers in 2026, there will be no more layoffs or furloughs next year.
He said avoiding layoffs and furloughs in 2026 will be contingent on the economy staying out of a full recession. He explained that the layoffs were decided based on a variety of factors, but that older workers were not targeted.
Johnston said it was "up in the air" if city employees would receive merit raises next year. For now, though, Johnston said city employees can "take a breath" as there will now be some stability and predictability.
The city also said that it was eliminating 665 open positions and finding new funding sources for 92 jobs.
In a news conference on Wednesday, Johnston said that over the last 10 years, the city averaged 5% revenue growth, but that flattened to 0% in the last year. At the same time, the city's government grew by 50% while the city's population only grew 14%.
"Even though the city budget is approximately 70% personnel, we solved for half of our budget gap with only impacting 1.5% of the city workforce," a PowerPoint slide from the news conference read. "The personnel decisions made this week will save the city $104M, or 50% of our $200M budget gap for 2026."
The city has a zero percent revenue growth forecast for 2026.
"I do not know of a year, maybe it exists, where the city has budgeted for zero percent growth and actually delivered on a zero percent growth, so this is actually the most conservative budget growth," said Johnston during a news conference.
CBS News Colorado has spoken to several of the workers who were laid off after they received the news this week.
"I'm one of the 170 plus that now have to figure out how I'm gonna pay the bills. How am I gonna take my daughter back to college in Boston in a week, and how do I pay for her tuition?" asked Scott Gilmore, longtime manager for the Department of Parks and Recreation.
Jessica Calderon spent decades working in the Mayor's Office of Social Equity and Innovation. She sued the city for political retaliation and discrimination, and is worried that her lawsuit factored into her losing her job.
"We we're all in shock and disbelief, and so I think we will be talking about what comes next, and a lot of us will be thinking of that, but right now, we're trying to take it all in, because I don't think anyone could have ever imagined that this is where we would be as a city," Calderon said.
Mike Wallin, president of AFSCME Local 158, the union representing Colorado's public service workers, said the union is planning to hold Johnston accountable for the layoffs.
"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."
While details of layoffs were still pending, 10 of Denver's 13 city council members were originally planning to attend a $26,000 team-building and professional development retreat. Following CBS Colorado's reporting revealing those plans, city officials said it would be postponed.
