OAKLAND — Oakland leaders say about 100 city workers will be laid off or demoted this week and next as the full consequences of the city’s devastating financial crisis take shape.

Individual layoff notices went out Thursday to workers who fill 77 full-time city positions, hitting hardest the public works and Oakland police departments, which respectively will lose 26 and 19 positions.

More will come next week. When the dust settles, roughly 100 people will be affected, either through layoffs or position bumps, City Administrator Jestin Johnson said in a statement.

The cuts to police are limited to non-sworn positions due to an agreement in the police officers union’s current contract that restricts cops from being laid off.

Otherwise, the staffing reductions are spread widely through the city’s various areas of public service, from two in the fire department, to a pair to three in the planning and building department, to four in the city’s police commission, which oversees local law enforcement.

“Today’s steps are unfortunate, and difficult,” Johnson said in a statement. “I won’t sugarcoat that, but I do want you all to know we are moving toward a long-term financial stability this City has desperately needed for too long.”

African American Sports and Entertainment Group founder Ray Bobbitt, front left, Oakland Mayor Sheng Thao and city administrator Jestin Johnson hold up signed copies of a term sheet between Bobbitt’s group and the city to acquire the entire Coliseum complex — a deal formally announced at Oakland City Hall on July 30, 2024. (Shomik Mukherjee/Bay Area News Group) 

Police overtime has been the biggest source of overspending at the cash-strapped city, which also has fallen short of what it expected to bring in from once-reliable revenue streams, including from taxes on real-estate transfers and business licenses.

The city’s fire department, which also overspends its budget, saw two fire stations temporarily close, with more brownouts expected in February. Police academies designed to train cadets have been canceled through June.

A big bet by ex-Mayor Sheng Thao, who was recalled by voters last November, to expedite a planned sale of the city’s Coliseum share — and use the revenue to pay city salaries — has also fallen short of expectations.

The sale could still be completed this year with Alameda County’s sign-off, but the revenue isn’t slated to arrive until the end of May, just ahead of when the fiscal year ends a month later.

The mayor’s office — now led by Interim Mayor Kevin Jenkins, who will serve until after the April 15 special election to replace Thao — had its own cuts to at-will employees on Jan. 17. City leaders will pursue voter approval of a new sales tax in the same special election.

Leaders for the city’s largest public-employees unions, SEIU 1021 and IFPTE Local 21, did not immediately respond to interview requests.

This is a developing story. Check back for updates.

Shomik Mukherjee is a reporter covering Oakland. Call or text him at 510-905-5495 or email him at [email protected].