Mayor Emanuel Announces Additional $25 Million in Savings Through Middle and Senior Management Cuts

Mayor Rahm Emanuel today announced that his Administration is eliminating an additional 400 senior and middle management positions throughout City government to achieve $25 million in savings in the 2012 budget. With today’s announcement, the City is on track to reduce middle and senior management by 11 percent by the end of 2012.

“My administration is committed to eliminating waste and bureaucracy throughout City Government so we can invest in efficient and streamlined services to better serve the taxpayers,” said Mayor Emanuel. “Every investment is about making the City better and more efficient for the people who pay the bills—the taxpayers.”

With today’s announcement, more than 510 total middle and senior management positions and vacancies have been cut out of the City’s payroll for a total of over $34 million in savings. On his first day in office Mayor Emanuel announced the City would achieve $75 million in savings, in part by reducing senior management positions. The Mayor's Office and every Commissioner across City government was to reduce the senior management payroll by 10%.

The $25 million in savings is achieved through the elimination of approximately 100 positions and 300 vacancies. The savings will be reflected in the 2012 budget which Mayor Emanuel will present to the City Council on October 12, 2011.

Since taking office in May, Mayor Emanuel has implemented a series of reforms to deliver services more efficiently and save taxpayers money including:

• A reduction of compensation received by members of City boards and Commissions;
• A comprehensive wellness program to City employees and their families that will save taxpayers at least $20 million during the first year of implementation;
• A Reverse Auction initiative that allows open and competitive bidding online in a format similar to eBay in reverse; and
• A partnership with Accenture to conduct a complete evaluation of citywide procurement services, which will save the City up to $25 million by 2013.

###