SF mayor hands out 127 layoff slips amid plans to cut 500 city positions

SAN FRANCISCO (KGO) — San Francisco Mayor Daniel Lurie says he plans to cut 500 city government positions because of a growing budget deficit.

On Monday, layoff notices went out to 127 city employees in 18 departments.

“Everyone is going to feel these cuts unfortunately,” said Lurie.

Faced with a $643 million deficit that could balloon to $1 billion in the next five years, Lurie says he needs to take action now.

“We are looking for $100 million in cuts to positions,” said Lurie.

MORE: San Francisco Police order deep cuts to overtime budget amid city’s historic deficit

Layoff notices went out to city employees in various departments including the Department of Public Health, Office of Economic and Workforce Development, and the Human Services Agency.

Some civilian positions within the San Francisco Police Department were also cut.

City officials say they’re forced to make the reductions because of state and funding cuts primarily stemming from President Trump’s “Big Beautiful Bill.”

Lurie intends to cut a total of 500 city government positions.

Labor leaders and city employees say they are worried layoffs will further strain understaffed departments. IFPTE Local 21 AND SEIU 1021 represent thousands of city employees. They believe there are better alternatives to layoffs.

“We need new revenue to offset the loss of funding from the federal cuts. Prop D is going to raise roughly $300 million annually for the city by asking only the largest corporations to contribute just a little bit more. These are the same corporations that got huge tax breaks under HR-1,” said Bianca Polovina, President of IFPTE Local 21.

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The unions also call on the city leaders to use reserves.

Lurie countered saying this:

“Any tax on the ballot that may or not pass would not come due for a year in a half. We as a city have been spending money that we don’t have for years. We need to be more financially disciplined.”

City leaders say layoffs are necessary now to get the city on track for the future.

“We need to get ahead of that and avoid this cycle of cuts and cuts. We need to be looking to the future. We need to invest in Downtown and we need to invest in public safety,” said San Francisco Supervisor Stephen Sherrill.

The next round of layoffs are expected in late May or early June. Lurie also plans on putting a hiring freeze on 2,000 vacant city positions.