L.A. could pay thousands of city workers up to $80,000 to retire in response to economic crisis

Local news
Los Angeles City Hall is seen in a file photo. (Richard Vogel / Associated Press)

Los Angeles City Hall is seen in a file photo. (Richard Vogel / Associated Press)

This is an archived article and the information in the article may be outdated. Please look at the time stamp on the story to see when it was last updated.

The Los Angeles City Council is poised to offer thousands of city employees cash payouts to retire, part of a major push to cut payroll costs during an unfolding financial crisis.

About 2,850 employees, or roughly 8.2% of the city workforce, would be eligible for buyouts of up to $80,000 if they retire in the coming year, city budget analysts said.

The program would result in a major downsizing of the workforce, the largest since the 2008 recession, triggering new reductions in services. Still, Mayor Eric Garcetti praised the initiative, saying it would cut employee costs while relying on fewer employee furlough days to balance the budget.

“It’ll save money. It’ll save costs. And it can perhaps lessen the furloughs,” he said.

The council’s Budget and Finance Committee endorsed the buyouts Monday, setting the stage for a full council vote on Tuesday. If approved, city employees who are eligible to retire — and have been facing the threat of furloughs — can begin applying for the retirement payouts next week.

Read the full story on LATimes.com.

Most Popular

Latest News

More News