In response to a projected $200 million budget deficit in 2026, Denver’s Office of Human Resources has announced that the city may have to lay off hundreds of city workers. Kathy Nesbitt, the executive director of the office, shared this estimate on Thursday, marking the first time the city has provided a concrete number regarding potential layoffs. Along with the announcement, proposed changes to city personnel rules have been revealed, which could make it easier for the city to implement these layoffs, particularly targeting long-term employees.
Proposed Rule Changes to Career Service Protections
Currently, long-term city employees are protected under Career Service Rule 14, which grants job protection based on seniority and offers a pathway to move to other city positions if their current role is cut. However, Nesbitt’s proposed changes to the rule aim to shift the focus solely to performance when determining layoffs. This would remove the protections for long-serving city workers, making it easier to lay off employees based on their performance rather than their seniority.
Nesbitt acknowledged that the proposed rule changes are necessary due to the budget deficit the city is facing. “I wouldn’t be looking at this right now but for the budget deficit we are facing for 2026,” she said. The Office of Human Resources emphasized that the goal of these changes is to streamline the layoff process and align it more closely with Denver’s merit-based career service personnel system.
Reactions to the Proposed Changes
The proposed changes to Career Service Rule 14 have sparked strong reactions from some city workers. One veteran employee, who chose to remain anonymous, expressed disappointment, saying, “It feels like a betrayal.” The worker criticized the elimination of seniority protections, calling it a disservice to employees who have dedicated their careers to the city. “This is dismantling not only the seniority system but the right to be reinstated if you are laid off,” they added.
City Councilmember Amanda Sawyer also weighed in, acknowledging the difficulty of the situation. “I’m not thrilled about it but I think they’re doing what has to be done,” Sawyer said. “Layoffs are hard. Changing Rule 14 midstream feels like adding insult to injury for our staff. But it needs to be done.”
Potential Impact on City Workers
The proposed changes could affect a significant portion of the city’s workforce. While the exact number of workers impacted by the rule change is unclear, the Office of Human Resources noted that most of Denver’s city employees were hired in the last 10 years. Nesbitt revealed that about 75% of the feedback she has received from city workers regarding the proposed changes has been negative. Many employees are finding the prospect of losing their seniority protections and being evaluated solely on performance to be unsettling.
Denver currently has around 10,000 workers covered by the career service rules, with many fearing the impact these changes could have on their long-term job security.
Denver’s projected budget deficit for 2026 is leading to difficult decisions, including widespread layoffs of city employees. The proposed changes to Career Service Rule 14 will make it easier for the city to lay off long-term workers, focusing on performance instead of seniority. While city officials argue that these changes are necessary for the city’s financial health, they have faced significant backlash from workers who feel their rights and protections are being undermined. The proposed changes will be discussed at a hearing on June 18, and the full impact on city workers remains to be seen.