In a bid to streamline the city’s bureaucratic processes, Portland Mayor Keith Wilson is prioritizing the consolidation of government programs. Wilson, along with interim City Administrator Michael Jordan, aims to achieve budget efficiency by reorganizing the city’s structure, currently spread across more than 20 bureaus.
The plan involves bringing together various city functions under a unified roof, including public relations, equity teams, and oversight departments for technology and contracts. This significant restructuring is expected to lead not only to budget cuts but also potential layoffs.
In a recent letter addressed to city employees, Jordan announced that a 20% budget reduction is forthcoming. Areas impacted include communication, technology, equity, procurement, community engagement, human resources, and budget writing.
“While our focus is service delivery, our financial reality requires us to reduce spending,” said Jordan in the letter. He indicated that these reductions could result in a mix of staff layoffs, contract reductions, and cuts to other spending.
Layoffs, if they occur, are not anticipated until September, though the city has not disclosed the exact financial amount represented by the 20% cuts or the number of job losses expected.
The proposed changes are likely to have a significant impact on the City of Portland Professional Workers Union, which includes nearly 800 staff members across six of the seven areas identified for potential cuts, with the exception of human resources. Staff ranging from financial analysts to communication officers express concerns over the disproportionate targeting of their jobs.
Kari Koch, president of the CPPW, voiced her worries. “Morale is in the gutter; people don’t feel seen or valued by the city administration,” she commented. The speed at which the city is moving towards restructuring has heightened anxieties among employees, particularly in light of considerations for job security.
The CPPW has been in negotiations for a new contract with the city for almost a year. These negotiations have recently shifted to mediation, an indication that the two sides are at an impasse in reaching an agreement. During mediation, Koch noted that discussions around layoff protections were particularly slow, which specify the protocol for selecting employees for layoffs and what benefits they might receive.
The quickly approaching budget cuts add pressure to these negotiations. Wilson is slated to release his proposed budget on May 5, and the City Council is expected to approve the final budget by June. Koch expressed concern over whether the ongoing negotiations would conclude before layoffs are mandated.
She stated, “What we know to be true is that the longer they deny us layoff protections, the easier it is to lay us off without consequence.” Koch raised concerns that the city might be using the delay in contract negotiations to advantageously position itself during the layoffs.
A recent document from Jordan proposed cutting approximately 275 jobs to help address the city’s estimated $93 million budget shortfall. The CPPW, collaborating with other city labor unions, has raised alarms about the sweeping impact such cuts could impose on all union members and has offered suggestions for alternative budget-balancing strategies.
As the city prepares to navigate these significant financial challenges, all eyes are on Wilson’s forthcoming budget proposal and how it will unfold in the coming weeks.
image source from:https://www.opb.org/article/2025/04/28/portland-union-budget-cuts-oregon-keith-wilson-jobs/