BOSTON (WBZ NewsRadio) — Boston Mayor Michelle Wu has signaled that the city’s workforce will be cut down, as economic uncertainty grows and the stock market continues to swing.
On Wednesday morning, Mayor Wu presented her proposal for the Fiscal Year 2026 operating budget and capital plan. She said the city must be prepared for “the potential for serious financial crisis,” citing tariffs, stock market volatility and a decrease in tourism as the biggest concerns.
“I’ve been checking the headlines. I’ve been monitoring the financial markets and it’s not pretty and it looks to be getting even worse,” said Wu.
In the hours after the presentation, the Trump Administration removed “reciprocal” tariffs causing the stock market to spike. While that might be good news for investors or those looking at their 401k, economists have predicted continued volatility as President Donald Trump keeps rapidly changing his policies.
Still, the city is expected to spend around $4.8 billion next year, which is about a four percent increase from the Fiscal Year 2025. Most of the city’s money comes from property taxes, which can be cumbersome for residents, but Wu said it also insulates the city from market shocks.
However, Wu said she wants to scale back on spending by not creating new jobs on the city level and cutting jobs that have been vacant for over a year.
“We will see a reduction of the equivalent of nearly 500 positions this fiscal year across the workforce,” said Wu. “We’re not adding any new head count to the city’s workforce.”
With $300 million in funding from the federal government in question due to the Trump Administration, Wu did not rule out the possibility for more drastic cost cutting measures.
“It may very well get to the point where we will need to be considering layoffs and hiring freezes,” said Wu.
WBZ NewsRadio’s Chaiel Schaffel (@CSchaffelWBZ) reports.