Layoffs have commenced at City Hall as New Orleans addresses a significant budget shortfall. Following Mayor-elect Helena Moreno’s plan, 13 employees from the Mayor’s Office of Youth and Families and the Office of Criminal Justice Coordination have been let go this month. Moreno’s administration aims to balance the city’s budget, which has been projected to have a $222 million deficit.
The staffing cuts are part of a broader strategy announced in November, which entails job losses, mandatory furloughs, and a hiring freeze across several departments. This initiative includes eliminating 36 unclassified positions, dismissing 62 workers who have less than a year of service, and freezing 134 other vacant posts. Additionally, non-public safety employees will be required to take one unpaid furlough day per pay period to help mitigate the financial crisis.
City Council President J.P. Morrell attributed the budget issues to the previous administration, while labor union representatives expressed concerns that current employees are unfairly bearing the consequences of past decisions. Despite these cuts, city officials have assured that essential services, such as sanitation and public safety, will remain unaffected.
The City Council recently approved a $1.6 billion budget for 2026, despite Mayor LaToya Cantrell’s veto, which incorporates layoffs, a hiring freeze, and substantial spending reductions. Council members indicated that no alternative budget was proposed, and the presented outline has gone through comprehensive reviews.
The first phase of layoffs is projected to save nearly $37 million, with additional reductions anticipated in early January. Transitional spokesperson Todd Ragusa emphasized that while the departments are being dissolved as standalone entities, their essential functions will be integrated into the Health and Human Services and Public Safety offices to enhance coordination and effectiveness.
Further notifications regarding any potential impacts on remaining unclassified City employees are expected by January 6, as ongoing evaluations of various City Hall departments continue within the new administration to align staffing with expressed priorities and operational necessities.