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.
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