Since Mayor Mike Johnston announced possible city layoffs to help balance a $250 million deficit in the 2025 and 2026 budgets, thousands of workers have been on edge — and brimming with questions about when the bad news would come.
Earlier this month, the Office of Human Resources notified staff that they will learn about potential layoffs after Aug. 1, according to an all-staff email Denverite obtained.
The mayor’s office still doesn’t know the scope of the layoffs or how much money could be saved by cutting positions.
“We are still working through the budget process and have not announced layoffs,” Johnston’s spokesperson Jon Ewing told Denverite.
The 2026 budget will not be proposed until Sept. 15, weeks after staff have been told they could be notified about job losses.
The city has implemented furloughs, a hiring freeze and the abolition of vacant positions to avoid as many layoffs as possible, said Laura Swartz, a spokesperson for the Department of Finance.
“However, in a budget that is almost 70 percent people, it may not be possible to make all of the adjustments needed without impacting employees,” Swartz said.
Whether potential layoffs will come in one wave or multiple is still unknown, she said.
Agency heads are hosting town halls and communicating with staff as the city works through the budget process, Ewing added.
“Staff have many questions, which is only fair and right,” Ewing said. “They’ve also shown resilience, toughness, and a willingness to move through this together. That is to the surprise of no one. They are the best.”
A change to how layoffs are made
The news about when layoffs would come reached employees on the same day the city announced its intention to transition to a merit-based system that would replace protections for workers with seniority.
“Executive Directors are working on the 2026 budget now and will begin to evaluate the impacts to the positions and employees in their respective departments and agencies in the coming weeks,” Office of Human Resources Executive Director Kathy Nesbitt wrote staff.
“If an Executive Director decides to eliminate positions to meet their budget requirements, impacted employees will be notified after August 1, 2025,” she added. “Employees will be provided at least 30 days’ notice before any changes to their employment.”
The city will be offering severance packages to workers, based on their years of service, according to the letter.
“Details of the tiered severance structure will be shared in the coming months,” Nesbitt wrote.
Some workers have asked if the city will offer an early retirement incentive. So far, the Office of Human Resources does not have an answer, though it’s exploring the possibility and will announce a plan in the coming weeks, according to the letter.
Employees are already facing between two and seven furlough days this year. Furlough days will not be subtracted from the pay of laid-off workers.
Mental health and future job prospects are a concern
For the first time, Nesbitt wrote, the city will also offer job search services through Denver Public Library and Denver Economic Opportunity and Development, along with additional support that will be announced before layoff notices are sent.
Both of those services are already offered to the general public. Those aren’t really special benefits for city workers, but more could be on the way.
“It’s possible that could change,” Human Resources spokesperson Theresa Marchetta told Denverite.
And as layoffs approach, Human Resources has raised concerns about the mental health of city workers.
“We understand that uncertainty can create worry for many employees,” Nesbitt wrote.
Along with the note about the city’s financial outlook, she reminded employees that the city offers mental health resources through its Employee Assistance Program.
The program is available 90 days after an employee is terminated and includes various benefits, including six therapy sessions.
Ryan Warner contributed reporting to this story.
