Denver to Begin City Employee Layoffs August 18 Amid $200M Budget Shortfall
Facing a growing $200 million budget deficit, the City and County of Denver will begin laying off employees during the week of August 18, according to a letter from Mayor Mike Johnston. The move comes months after the city announced furloughs due to a $50 million revenue gap, driven by an economic slowdown that has seen revenue growth drop to just 0.3%, compared to 5% in previous years.
Though the total number of layoffs has not been disclosed, employees affected will be notified during the designated week and will have their last working day on the same date. They will then receive 30 days of paid administrative leave, during which salary, benefits, and time-off accruals will continue. Health coverage will extend through September 30, and severance packages have been established based on years of service, ranging from two to eight weeks of additional pay. A one-month medical stipend will also be included.
The city recently changed its layoff protocol, replacing the traditional seniority-based system with a merit-based approach—prompting criticism and protests from city workers. Despite the cuts, Mayor Johnston emphasized his intent to protect core services and continue delivering on residents’ top priorities.
To support displaced workers, Denver’s Department of Economic Development and Opportunity has launched an Employment Transition Assistance team to provide job search help, unemployment guidance, and mental health resources.
A full breakdown of severance packages and transition resources can be found on the city’s website:
👉 Layoff Separation Guide – City and County of Denver
