MEMPHIS, Tenn. (AP) - About 125 Memphis city employees will be laid off this week and most city employees who keep their jobs will get a 4.6 percent reduction in pay.
A letter was sent to employees from Human Resources director Quintin Robinson saying employees will be notified of layoffs on Friday, but will continue to be paid through July 15.
In addition, Memphis Mayor A C Wharton has decided to end a one-time $5,000 death benefit to the spouses of current and retired city employees. The benefit was in addition to pension benefits that spouses receive.
A sagging economy created a roughly $60 million budget deficit for the mayor. The layoffs, pay reduction and elimination of 248 vacant positions are expected to save the city $35.9 million.
(Copyright 2011 by The Associated Press. All Rights Reserved.)