Denver workers will start receiving layoff notices on Aug. 18, according to a letter issued by Mayor Mike Johnston on Tuesday.
“As I shared in March, the continual slowdown in the economy we are seeing locally and nationally has deeply affected the city budget, and we need to build a budget that fits within the revenues we have,” Johnston wrote.
The notice did not say how many jobs would be cut, but the mayor is hoping to close a steep budget deficit of about $250 million in the current and coming budget years.
The city expects to make all the necessary layoffs in a one-week period.
How layoffs will work.
Affected employees will stop work on the same day they get the layoff notice.
All workers will be given 30 days of pay and benefits after they are notified. They will receive medical, dental, and vision coverage through Sept. 30, 2025.
Severance packages will be based on years of service, ranging from two weeks to eight weeks. Employees with more than 15 years of service would get the maximum severance.
Employees within 90 days of retirement eligibility will be permitted to retire with benefits if they are laid off.
A legal fight could be coming
Law firms, including Newman McNulty, have expressed interest in representing city workers in legal action over the layoffs, and former mayoral candidate Lisa Calderón is working with city worker unions to coordinate the legal effort.
The city’s Career Service Board recently drew intense pushback from employees when it changed the criteria for layoffs, reducing protections for senior employees. During public meetings, lawyers with the City Attorney’s Office warned city officials that mass layoffs could end up costing the city heavily in legal fees.
To receive the severance package, workers will have to sign a severance agreement designed to protect the city from being sued.
“These are not easy days, and these are not easy decisions,” Johnston wrote. “Every role in this city matters, and every person in those roles has contributed to our city in meaningful ways.”
The letter came days after Johnston’s State of the City address, in which he did not directly address impending mass layoffs, instead striking a mostly optimistic tone about the city’s future.
