LA Considering Paying Thousands To City Workers To Encourage Them To Retire

Photo: Getty Images

The COVID-19 pandemic continues to affect cities nationwide as they try to figure out how to pay back all the resources they've used to fight back against coronavirus.

The Los Angeles City Council is considering offering thousands to city employees as cash payouts to retire, This would cut payroll costs dramatically and help the city deal with their financial crisis.

Around 8.2% (about 2,850 employees) on LA's payroll would be eligible for these buyouts. According the city budget analysts, buyouts can be up to $80,000 if they retire this year.

This would be the largest downsizing of the workforce since the 2008 recession. However, this wouldn't stop the reduction of services that are likely follow. Mayor Eric Garcetti is a fan of this plan. He believes it would cut employee costs and wouldn't force the city to continue to furlough other employees.

“It’ll save money. It’ll save costs. And it can perhaps lessen the furloughs,” he said.

For more information, please read here.


Sponsored Content

Sponsored Content