SAN FRANCISCO (KGO) — San Francisco Mayor Daniel Lurie is reportedly ordering city departments to cut at least 500 jobs as the city faces a severe budget crisis.
The city is facing a historic budget deficit of $877 million, and now our media partner The SF Standard is reporting that $100 million in personnel spending must be eliminated.
MORE: Mayor Daniel Lurie touts SF in 1st State of the City address: ‘People are proud to live here again’
San Francisco Mayor Daniel Lurie delivered his first State of the City address, highlighting that the city is “on the rise.”
The Standard reports that the directive came from the mayor’s budget director.
That $100 million equates to roughly 500 budgeted positions.
Much of the city’s budget deficit is being blamed on President Trump’s federal reductions to healthcare spending.
In the email sent to department heads, obtained by the Standard, the budget director said:
“The city can’t afford to sustain current spending on personnel costs. Meeting this target requires eliminating filled positions.”
MORE: San Francisco Mayor Daniel Lurie signs $15.9 billion city budget for next 2 fiscal years
This is the second year that Mayor Lurie’s administration has resorted to layoffs.
Last time, public-sector unions pushed back, which led to fewer workers losing their jobs than was initially proposed.
City departments are also expected to cut contracts and reduce overtime spending.
The departments have a March 12 deadline to respond to Mayor Lurie’s budget director.
Copyright © 2026 KGO-TV. All Rights Reserved.
