The executive director of Denver's Office of Human Resources, Kathy Nesbitt, said Thursday the city's projected $200 million deficit in 2026 would likely mean "hundreds" of city workers will be laid off, necessitating dramatic changes in some city personnel rules.  

In an interview, Nesbitt was asked if it looked like hundreds of city workers would likely be laid off next year. She responded, "I think it would be... Fair to say". 

Nesbitt has also unveiled proposed changes to a city personnel rule that provided job protection and seniority privileges for long-term city workers. Career Service Rule 14 provided job protection for workers based on their years of service, and allowed them to move to other city positions if their position was cut. Nesbitt's proposed changes -- which are supported by Mayor Mike Johnston -- would do away with those protections and make it easier to lay off longer-term city workers.

"I will tell you," said Nesbitt, "I wouldn't be looking at this right now but for the budget deficit we are facing for 2026."

Her agency said the proposed rule revisions are to make sure layoffs "are implemented in a more streamlined manner that is consistent with the merit-based career service personnel system ... The impact will be that layoffs will now be determined solely on performance instead of a combination of seniority and performance."

The proposed changes will be the subject of a hearing on June 18.

"It does feel like a betrayal," said one veteran city worker, who asked their identity be concealed for fear of reprisals.

"I think that it is a huge disservice to people who have dedicated their careers to the city. This is dismantling not only the seniority system but the right to be reinstated if you are laid off," said the city worker.

Denver City Councilmember Amanda Sawyer said of the proposed rule changes, "I'm not thrilled about it but I think they're doing what has to be done."

"Layoffs are hard. Changing rule 14 midstream feels like adding insult to injury for our staff. But it needs to be done," said Sawyer.

It's unclear precisely how many city workers might be potentially impacted by the rule change, but the Office of Human Resources said the majority of current city workers had been hired in the last 10 years.

Nesbitt said by Thursday afternoon, her office had started hearing from city workers about the proposed changes.

"I would say about 75% are dissatisfied," said Nesbitt, who agreed the potential change likely feels "earth-shattering" for some city employees. The city has about 10,000 workers covered by career service rules.