DENVER — The City of Denver will begin laying off employees next month, and impacted personnel will be notified the week of August 18, according to an email from Mayor Mike Johnston sent Tuesday.
In May, Johnston announced the city was projecting a $50 million budget deficit for 2025 and a $200 million budget deficit for 2026. The mayor said his administration must consider layoffs to help the city balance next year’s budget.
Then, earlier this month, the city's career service board approved changes to the city’s layoff procedures, making it easier to lay off longtime city employees by removing some of their protections.
- Denver7 Chief Investigator Tony Kovaleski sat down with Mayor Mike Johnston to reflect on two years in office, and took Denverites' concerns straight to the man in charge. Watch the full interview in the story below:
Denver7 Investigates
Denver7 Investigates goes 1-on-1 with Mayor Johnston after two years in office
The mayor began his email to city staff by thanking employees for "the way you've continued to show up" amid budget challenges. He said the "continual slowdown in the economy" has impacted the city's budget, and "we need to build a budget that fits within the revenues we have."
Johnston said layoff notifications will be made over a one-week period beginning on Monday, August 18. All impacted employees will be notified during this week, according to the mayor.
The employee's last working day will be the same day they are notified, unless an approved exception is made with their consent.
"We will provide eligible affected employees a severance package, extended health care coverage, and outplacement support to help find their next job," Johnston wrote.
Laid-off employees will receive 30 calendar days of paid administrative leave, according to the mayor. They will also continue receiving their salary and benefits, including time-off accruals. The official separation date will be 31 calendar days after notification.
Most benefits will end after 31 calendar days, but employees will retain their medical, dental and vision coverage through September 30, according to Johnston.
Eligible employees will also receive a severance package in addition to the 30-day paid administrative leave. The packages will be based on their length of service, and employees who sign the severance agreement will receive their severance payment within 14 days after their employment officially ends.
The severance packages will also include a stipend "equal to one month of the city's share of medical insurance" so that employees can "keep health care coverage for at least 60 days after notification of a layoff."
- The chart below outlines the amount of severance that eligible employees will receive based on their length of service:
According to Johnston, probationary employees, employees who are retiring and on-call employees are not entitled to severance.
In his letter, the mayor said his team is "committed to supporting our employees to find their next job during this transition." The Department of Economic Development and Opportunity's Workforce Development division has created an Employment Transition Assistance team to "support impacted employees from the day of separation, offering personalized support, job search and training opportunities, help with unemployment filings and wellness and mental health resources," according to Johnston.
"These are not easy days, and these are not easy decisions. Every role in this city matters, and every person in those roles has contributed to our city in meaningful ways," Johnston wrote. "I want to thank each of you – whether you are directly impacted or not – for the heart, talent, and service you bring to this work. This is a moment that calls for our deepest compassion and greatest resilience. And I know that even as we move through challenge, we will persevere together."
The city has created a "layoff separation guide" for employees, which can be found here. The guide says that "to receive the severance package, employees must sign a severance agreement that includes a waiver of legal claims."
Former Denver mayoral candidate responds to layoffs
Denver7 spoke with former Denver mayoral candidate and social justice advocate Dr. Lisa Calderón on Tuesday.
"[The layoffs are] taking place six months before collective bargaining rights are going into effect, so this is no accident," she said. "We know that the city is struggling with budget revenues, but it's also struggling with overspending by the mayor. What I'm hearing from city employees is they feel it's unfair that the mayor overspent their budget, now they are paying for it."
Calderón said she has been speaking with city workers and local attorneys about potential legal challenges to come.
"I think all options are on the table," she said. "I've talked to lawyers who said, 'We'll look at cases one on one and decide the merits.' And then there are others who said, 'We're interested in looking at class action lawsuits.'"
Calderón believes the slight increase in severance pay for longtime employees compared to those with five years of service could amount to age discrimination. She also wants to see if any members of Mayor Johnston's office end up getting laid off.
She urges city employees who believe they've been discriminated against to gather documents now.
"I really want to encourage city employees to fight for their rights, to know that they have rights, and if they feel that their due process rights are violated, they have a right to sue," Calderón said.
Denver7's Ryan Fish contributed to this report.
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