Denver City Workers Face Uncertain Future as $250M Budget Deficit Forces Layoff Plans

Thousands of Denver city employees are bracing for potential job cuts as Mayor Mike Johnston's administration grapples with a staggering $250 million budget shortfall projected for 2025 and 2026. The looming layoffs could impact vital city services that Colorado families depend on across the metro region.

According to city communications, affected workers will learn their fate after August 1, 2025, marking a period of unprecedented uncertainty for Denver's public workforce. The decision comes as Colorado's capital city faces one of its most significant financial challenges in recent history.

Impact on Denver Metro Services

With nearly 70% of the city's budget tied to personnel costs, the cuts could affect essential services that Denver metro residents rely on daily. Laura Swartz, spokesperson for the Department of Finance, emphasized the difficult road ahead:

"In a budget that is almost 70 percent people, it may not be possible to make all of the adjustments needed without impacting employees."

Cost-Saving Measures Already in Place

The city has implemented several steps to minimize layoffs, including:

• Mandatory furlough days (2-7 days per employee in 2025)
• Hiring freeze across departments
• Elimination of vacant positions
• Merit-based retention system replacing seniority protections

Support for Affected Workers

The city plans to offer several assistance programs for impacted employees:

• Tiered severance packages based on years of service
• Job search services through Denver Public Library
• Career assistance through Denver Economic Opportunity and Development
• Mental health support through Employee Assistance Program

City spokesperson Jon Ewing praised the resilience of Denver's workforce, stating:

"Staff have many questions, which is only fair and right. 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."

"Staff have many questions, which is only fair and right. 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."

Timeline and Next Steps

Key dates for affected employees and Denver residents:

• After August 1, 2025: Initial layoff notifications begin
• 30-day notice: Guaranteed for all affected employees
• September 15, 2025: Official 2026 budget proposal due

For Denver metro residents, these changes could mean adjusted hours at city facilities, longer wait times for services, and potential impacts to community programs. The full scope of service impacts will become clearer when the budget proposal is released in September.

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