New York City Mayor Bill de Blasio may begin notifying municipal employees that they will be laid off in the coming weeks if the city council cannot find other ways to plug coronavirus-related budget holes.
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A spokesperson for the mayor’s office confirmed in an email to FOX Business that employees would begin receiving layoff notifications on Monday, though actual layoffs would not take effect until Oct. 1
As previously reported by Fox News, de Blasio said he may be forced to lay off 22,000 municipal employees over time as the city contends with deepening revenue losses.
During a news conference in June, de Blasio said the city is facing $9 billion in lost revenue, with a possibility that losses could end up actually being much higher.
“Here is a way to think about it -- for every hundred million dollars in city budget -- that's about 2,200 city employees, on average,” de Blasio said. “To close a $1 billion dollar gap would mean laying off 22,000 city employees, which is a staggering number.”
The city employs about 330,000 municipal workers.
Both de Blasio and New York Gov. Andrew Cuomo have asked for relief from the federal government. However, negotiations regarding another relief bill broke down earlier this month.
New York City, specifically, is also dealing with an outflow of residents, which began as the pandemic took hold of the city during a severe break out in the early spring.
Since then, moving companies have told FOX Business that they have been “insanely” busy with Manhattan move-outs.
Many people with the means to do so have relocated to outer-boroughs or to nearby suburbs, like the Hamptons.
Suffolk County, Long Island executives said during a press conference on Thursday that they are expecting Manhattanites to stay past Labor Day Weekend, which is when homeowners and renters traditionally return to the Big Apple.
“Those homeowners here, those renters here, now, because … we are still in the midst of this, we are still fighting COVID-19, many are looking to continue to reside here,” Suffolk County executive Steve Bellone said.
Some people are staying temporarily, while others have decided to stay permanently, officials said.
Those moving trends afford local businesses an opportunity to recoup some of the revenue lost due to coronavirus-related closures earlier this summer, but it could come at the expense of businesses in Manhattan.