Portland city administrator announces financial reduction targets for core services

Today, City Administrator Mike Jordan announced key steps to restructure and streamline core services under Portland’s newly restructured form of government. This effort aims to enhance service delivery while addressing the city’s financial challenges.

Jordan announced that each core service — including communications, engagement, equity, human resources, technology, procurement, and the newly added budget and finance practice — will reduce ongoing costs by approximately 20 percent over the coming year. These cuts may include reductions in staff, contracts, and other expenditures, and are intended to stabilize the city's finances.

The proposed changes will be reflected in Mayor Keith Wilson’s budget, to be released in early May. The financial impact will be phased, with initial savings realized during the upcoming fiscal year and full cost reductions implemented by July 2026.

“Portland is facing a challenging budget as we make decisions that will shape our city for years to come," said Portland Mayor Keith Wilson. "As we work toward a balanced budget, I want to express my deep appreciation for City Administrator Michael Jordan’s ongoing collaboration. Addressing our financial realities is a sobering responsibility — one that I approach with care, collaboration, and a commitment to the people of Portland.

Accomplishing this monumental task will require reorganizing City bureaus into a system that shares resources, promotes growth, and better supports our workforce. I'm grateful for the support I've received from City employees from every bureau, especially as we make difficult and painful staffing decisions in the coming months. We will be here to help guide individuals and teams through every step. In the meantime, I am appreciative of their continued commitment and hard work.”

Jordan emphasized that layoffs associated with core service realignment will follow implementation timelines, with no additional layoffs anticipated by June 30, 2025. He noted his commitment to clear and early communication as staff and leaders adapt to the changes.

Additional details will be shared with affected staff at the discretion of project leads as planning progresses. 

You can read City Administrator Jordan’s full email to city employees below:

City Employees, 

In January, I announced that we will restructure core services to help make the most of Portland’s new form of government and help stabilize the City’s finances. In each practice, leaders are thoughtfully evaluating how we have delivered services in the past and how we can reshape those models going forward.  

While our focus is service delivery, our financial reality requires us to reduce spending. In advance of the Mayor’s Proposed Budget being released in early May, I can now share that each core service will be asked to reduce its ongoing costs by approximately 20 percent over the coming year – which will impact all funds citywide. Meeting this target could include a mix of reductions in staff, contracts and other spending. 

We expect to realize only about half the savings during the upcoming fiscal year, due to our phased approach to implementing realignment for each core service. The full savings will be realized during the following budget year – beginning in July 2026. Layoffs associated with core service realignment will be effective when changes are implemented for a given work area, with the earliest dates coming Sept. 30. In other words, we do not anticipate additional layoffs June 30 as a result of core service assessments. After the mayor’s budget proposal is released, you can anticipate details about how we plan to adjust budgets as we implement this work over the coming year.  

Core service areas and project leads are as follows: 

I recognize that financial cuts create anxiety for staff. From my end, I am committed to communicating as clearly and early as possible – and I am hopeful that you will bring your expertise to help the City shape our work going forward. 

Please take care of yourselves and one another. I appreciate you. 

Mike Jordan