San Francisco layoffs begin as deficit nears $1B

San Francisco Mayor Daniel Lurie after six months in office

San Francisco Mayor Daniel Lurie marks six months since taking office. While improving public safety, boosting business, ending the fentanyl crisis, and easing homelessness, were among his top priorities, a new issue has taken front and center for many San Franciscans. Hear what Mayor Lurie had to say.

SAN FRANCISCO - San Francisco has begun issuing layoff notices to city employees as officials grapple with a budget deficit reaching nearly $1 billion.

The mayor’s office confirmed Monday that job cuts are underway, with pink slips sent to workers across multiple departments.

Layoffs across departments

What we know:

According to the mayor’s office, and as first reported by the San Francisco Standard, 127 layoff notices were issued across 18 departments.

Affected employees include staff in the City Administrator’s Office, Department of Public Health, San Francisco Police Department, Office of Economic and Workforce Development, and the Human Services Agency.

City leaders cite budget crisis

Dig deeper:

In a statement, Mayor Daniel Lurie’s office pointed to the city’s worsening financial outlook.

"Facing a budget deficit that will rise to $1 billion, alongside significant cuts in federal and state funding, we have a choice: take action now or be forced to do twice as much in the coming years," the statement said. "The steps we’re taking today are a painful but necessary continuation of the work we’ve been doing since last year to manage taxpayer dollars responsibly and deliver the best possible services for San Franciscans."

Additional layoffs could follow. The mayor’s office has proposed cutting up to 500 city jobs to address an estimated $877 million shortfall.

Federal cuts are driving factor

Local perspective:

In early March, Budget Director Sophia Kittler told staff in an email that the reductions are largely driven by federal cuts to health care funding.

The Department of Public Health alone is expected to reduce staffing costs by about $20 million, equivalent to roughly 100 positions.

Kittler also directed departments to scale back contracts and reduce overtime spending.

The mayor is expected to present a proposed budget in June. The Board of Supervisors is scheduled to vote on it in July.

Labor unions push back

What they're saying:

Labor unions representing city workers criticized the layoffs, arguing they will strain already understaffed departments.

"The city has come a long way since the pandemic, but cutting public services now would be a huge step backward we can’t afford to take," said Brittany Hewett, a registered nurse at San Francisco General Hospital. "Clean streets, strong hospitals, and green transit are just a few of the essential services that our recovery relies on, and those don’t happen without city staff to do them."

SEIU Local 1021 said the full impact of the cuts is still unfolding.

"What we know so far is that the cuts are drastic and are going to be felt in every corner of San Francisco," the union said. "City workers are deeply concerned that these cuts will further strain already understaffed departments that keep San Francisco clean, safe, and livable."

Teamsters Local 856 said voters could help prevent deeper cuts by passing Proposition D, known as the "Overpaid CEO Tax." The measure would increase taxes on companies whose top executives earn more than 100 times the median pay of their San Francisco workers.

"In one of the richest cities in the world, cuts like this are a choice, not a necessity," said Mark Leach, a representative for the union. "Large corporations are cashing in on Trump’s tax breaks, but we can make them pay their fair share in San Francisco by passing Prop. D in June."