Los Angeles Mayor Karen announced on Tuesday that her administration has reached a deal with labor unions that averts all remaining layoffs in the city’s fiscal budget, resolving one of the most contentious issues in this year’s budget cycle.
The agreement marked a sharp reversal from Bass’ original FY 25-26 budget proposal in April, which included more than 1,600 layoffs to address the city’s budget shortfall. The deal averts those cuts entirely, ending weeks of uncertainty for city workers and preserving public services that had been at risk.
“This is not about numbers on a spreadsheet, this was always about protecting our skilled city workforce who have trained for years and honed their craft,” Bass said at a press conference in downtown Los Angeles, where she was joined by city leaders and representatives from several municipal employee unions.
Bass’ original $14 billion budget proposal had included 1,647 layoffs and the elimination of more than 1,000 vacant positions as part of a plan to address a $1 billion budget deficit.
A revised version adopted by the City Council in May — and signed by Bass in June — saved roughly 1,000 jobs by trimming proposed increases to the Fire Department, scaling back LAPD hiring plan and shifting some positions off of the general fund. But several hundred jobs remained at risk until this week’s announcement.
According to the mayor’s office, those remaining layoffs were ultimately avoided through a combination of negotiated labor agreements, department transfers and creative staffing alternatives.
City Administrative Officer Matt Szabo said that after the revised budget was adopted in June, 614 employees still faced potential layoffs. His office worked with labor groups to calculate the savings required to keep those workers on the payroll, then helped broker agreements to meet those targets, including changes to overtime policies, unpaid holidays and staff reassignments.
About 250 of the at-risk employees worked in civilian roles at the Los Angeles Police Department. To save those positions, the Los Angeles Police Protective League, which represents sworn officers, agreed to let its members voluntarily receive overtime as paid time off, reducing LAPD overtime expenses and avoiding civilian layoffs within the department.
For the remaining 300 or so employees, the city partnered with civilian unions to expedite transfers into vacant positions and secure commitments for up to five unpaid holidays in the latter half of the fiscal year.
Two major labor groups — the Coalition of L.A. City Unions, which represents more than 20,000 city workers, and the Engineers and Architects Association, which represents over 6,000 technical and professional staff — agreed to the unpaid days.
Those days are February 9, March 27, April 6, May 22 and June 22. The final number of unpaid days will depend on how many employees remain to be transferred into funded roles by the end of 2025.
Additional savings came from shifting employees from at-risk positions into vacant or specially funded roles — including transfers to departments such as the Port of Los Angeles, Los Angeles World Airports, and the Department of Water and Power, which operate outside the city’s general fund and have more flexible funding sources.
“Our members secured a historic agreement that will avert layoffs and establish a joint effort with the city to increase revenues, to protect and restore our city services,” said David Green, president and executive director of SEIU Local 721, which represents 11,000 city employees.
Marlene Fonseca, executive director of the Engineers and Architects Association, recalled reaching out Monday to a member who had recently been laid off but was slated to return thanks to the agreement. He had planned to attend the press conference but was unexpectedly hospitalized over the weekend.
“Had we not had this agreement, he would be facing a medical crisis with no health insurance,” Fonseca said. “This is the real human difference that solidarity makes.”
The mayor’s announcement comes months after a contentious budget season that drew pushback from several City Council members and employee unions.
In the council’s first vote on the revised budget, Councilmembers John Lee, Traci Park, and Monica Rodriguez voted no, citing concerns about cuts to public safety. The budget passed on a second vote, 11–2, with Lee and Park maintaining their opposition. Rodriguez and Nithya Raman were absent.
“I commend the collaborative efforts that led to this result, and I’m especially proud that the LAPD civilian positions previously identified for elimination were saved,” Lee said in a statement Tuesday. “These professionals are essential to the department and to keeping our communities safe.”
Some community leaders and neighborhood council members welcomed the news, saying it was a relief for both workers and for residents who rely on city services.
Lionel Mares, a member of the Neighborhood Council Budget Advocates, who spoke on his own behalf, said, “I have been urging the Los Angeles City Council and Mayor to save city employees from potential layoffs, because at this critical moment in our city we need to preserve city services, especially for low-income communities and neighborhoods.”
Mihran Kalaydjian, president of the Winnetka Neighborhood Council, said the agreement would benefit city workers and called it “a courageous step by the mayor.”
While the agreement resolves immediate concerns over layoffs, Szabo said his office remains cautious about the city’s financial outlook amid falling revenues and global trade uncertainty. His office plans to release its first quarterly budget report in October.
“But as of now, the $1 billion deficit was closed, and as this budget is implemented, we are projecting a structural balance in the following fiscal year, along with surpluses in years three and four,” he said.