San Francisco city departments have been told they will need to eliminate at least 500 budgeted positions, including some currently filled roles, as part of a sweeping effort to reduce a projected $400 million annual deficit, according to a directive sent to department leaders by the head of the Mayor’s Budget Office (MBO).
In the email, Sophia Kittler, director of the budget office, said the city must reduce salary and benefits spending by at least $100 million in the coming budget. That reduction equates to cutting at least 500 positions across the general fund.
“Meeting this target requires eliminating filled positions,” the message states, citing an analysis by the Mayor’s Budget Office of current vacancy rates.
The directive comes as city officials try for the second consecutive year to balance a budget deficit that has ballooned to nearly $1 billion over two years. Mayor Daniel Lurie pointed to tough cuts and decisions made when delivering a balanced budget in June 2025.
Reports of looming job cuts were quickly rebuked by labor unions, including SEIU 1021.
Union president Theresa Rutherford said in a statement the positions that could be eliminated are “critical public services that San Franciscans of all walks of life depend on.”
“San Francisco’s recovery and economic success is tied to the workers who do the hard work every day to keep this city supported and deliver important services to the community. They clean our streets and parks, respond to emergencies, provide life-saving care in our public hospitals, help people in crisis on our streets and connect them with housing and services,” Rutherford added.
According to Kittler’s email, earlier departmental budget submissions did not identify sufficient savings to close the city’s two-year deficit or make meaningful progress toward reducing its structural deficit.
“The City must bend the cost curve, especially where rising expected costs exceed both inflation and revenue expectations,” the email said.
Personnel costs are a central focus of the reductions. Kittler wrote that the city “cannot afford to sustain current spending on personnel costs” and said departments’ initial proposals accounted for less than 25% of the targeted savings.
Departments have been instructed to work with the budget office to revise staffing levels and related spending for the coming year. Updated staffing recommendations are due to the MBO no later than the close of business on March 12.
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