Denver cuts staff as budget concerns grow

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(The Center Square) — The city and county of Denver has laid off 169 employees, which is part of a larger effort to balance the 2026 budget.

“Each and every single employee we said goodbye to this week has given their all for Denver. Our city owes them a debt of gratitude” said Denver Mayor Mike Johnston. “Over the last three months, I have watched as our teams have come together to identify savings, do more with less, and find creative ways to provide the same world-class services to our residents. That shared sacrifice and commitment to excellence has saved hundreds of jobs and represents the very best of Denver.”

This came as the city faced a $200 million funding shortfall, due to flattening city revenues. That downturn the city has blamed on “national economic uncertainty and rising costs.”

Yet it first began to make cuts nearly 18 months ago, starting with slowing hiring in early 2024.

That was followed by making cuts in the 2025 budget and freezing hiring in 2025. 

“Due to these efforts, the city was able to significantly minimize impact to employees and public services,” the city said in a statement.

The layoffs represented 2% of the city’s workforce, while a total of 928 positions were eliminated from the city’s general fund through layoffs, transfers to different departments, freezing hiring and the elimination of vacant positions.

Those cuts are expected to cover approximately half of the $200 million funding gap. The other half will be addressed through other "cost-saving measures."

Denver applauded Johnston’s efforts.

“While identifying savings, Mayor Johnston directed departments to prioritize the protection of core city services, maintain focus on top city priorities and goals, and to minimize impacts to employees,” it said.

The city said its priorities are:

• No reductions in police service or patrols.

• No impact to trash pick-up service or schedule.

• No changes to operating hours at parks, recreation centers or libraries.

• No change in the city's commitment to improving permitting times.

The city said the layoffs were necessary.

“A deficit of this size requires a structural reorganization to prevent this type of budget deficit in the future while continuing to be good stewards of taxpayer dollars,” it stated. “Since nearly 70% of the general fund budget goes toward personnel costs, eliminating positions was necessary to meet the budget gap.”

Every general fund agency across the city government was affected, with Transportation and Infrastructure, Parks and Recreation, Finance, and the Denver Public Library having some of the largest reductions in staff. Some other agencies are also facing restructuring. 

According to the city, there will be no additional layoffs or furloughs for the impacted agencies this year.  

These cuts came even though the 2026 budget has yet to be announced. Johnston is expected to deliver the full 2026 budget on Sept. 15.