Dallas City Manager Kimberly Bizor Tolbert hints that layoffs could be coming for city employees as Dallas prepares a budget she says will impact its workforce.

Tolbert addressed employees Friday in a YouTube video, saying the city must look closely at how it can best serve Dallas residents as it faces a changing financial environment. She also said Dallas has entered a time when change is the new normal, and the city can no longer rely on predictable revenue growth or a workforce model that remains relatively unchanged.

Tolbert said there are no sacred cows and that if a program, workflow, or legacy practice does not serve residents well, the city should rethink it.

“Regrettably, despite the efforts, this budget does impact our workforce, and I understand that this news brings uncertainty, and what I want you to hear from me is that I care deeply about each of you,” Tolbert said.

Tolbert did not say how many employees would be impacted or when any job cuts may be announced.

“These decisions are challenging because it’s not about positions; it’s about people, and I know that behind every line item is a person, it’s a family, and it’s years of dedication to this organization,” Tolbert said. “Please know that we are committed to treating every impacted employee with dignity, compassion, and respect. And for those impacted employees, we have programs ready to assist you in transitioning to another opportunity.”

Tolbert said she will hold employee budget town halls beginning Aug. 10, and she invited employees to attend and bring questions so they can hear answers directly from her.

NBC 5 learned more than 250 positions are being considered for elimination, with roughly 100 of those being a reduction in force, meaning those people would lose their current jobs. The city’s entire workforce sits about 15,000.

The 2026-27 budget is expected to be presented to the City Council on Aug. 11. Members of the Dallas City Council will hold about two dozen town halls to present the budget to citizens and field questions. According to Texas state law, the budget must be balanced and adopted by Sept. 30.

Mayor Pro Tem Maxie Johnson released a statement Friday evening that says in part:

“At this time, I am committed to conducting a thorough and thoughtful review of the proposed budget. My staff, members of the District 4 community, and I will carefully examine every aspect of the proposal to better understand its fiscal impact, priorities, and how it affects the residents of Dallas.”

“The budget is one of the most important responsibilities of the Dallas City Council. As Deputy Mayor Pro Tem and Chair of the Committee on Government Efficiency, I remain committed to ensuring that taxpayer dollars are spent responsibly…”

“I look forward to next week’s budget workshop, where I will hear the City Manager’s full presentation and recommendations. I also anticipate a robust discussion with my colleagues as we work through this process and evaluate the proposed budget…”

On Aug. 12, the City Council is expected to decide whether to send a $1 billion bond package to voters this fall to deliver a long-promised new police academy and help provide financial flexibility in making ongoing contributions to the city’s police and fire pension fund.

Earlier this year, Tolbert said thousands of city employees would be required to take three unpaid furlough days as the city worked to address a shortfall of more than $30 million from last year’s budget. Tolbert said the budget gap was driven by lower-than-expected sales tax revenue along with higher-than-anticipated overtime and employee medical claims.