PRESS RELEASE #2 FOR IMMEDIATE RELEASE October 14, 2026
October 14, 2026
CITY OF HOLLISTER CLARIFIES MISINFORMATION REGARDING WORKFORCE REDUCTIONS AND FINANCIAL EMERGENCY
In April 2026, the City began a comprehensive organizational realignment in response to serious financial conditions. At that time, the Administration made clear that additional workforce reductions could become necessary.
Throughout May and June, during the Fiscal Year 2026–2027 budget process, the City repeatedly communicated the seriousness of its financial position and the possibility of further staffing reductions.
In July, the City offered voluntary separation and retirement incentives to reduce personnel costs while minimizing involuntary layoffs. Several employees accepted these incentives and separated from City service.
Unfortunately, following the completion of the first quarter of the fiscal year, expenditures continued to exceed available revenues, and voluntary workforce reductions did not generate sufficient savings.
The City must now take additional action to reduce expenditures and preserve its ability to provide essential public services. Because personnel costs represent a substantial portion of the City's operating budget, workforce reductions have become unavoidable.
Today, October 14, 2026, the City is issuing layoff notices to affected represented and unrepresented employees.
Out of respect for these employees and their families, City operations will be temporarily limited today to allow the notification and transition process to occur with appropriate privacy, dignity, and professionalism.
These decisions are difficult and deeply personal. They affect dedicated public servants who have contributed to the Hollister community, often for many years.
The City recognizes their service and sacrifice and is committed to treating every affected employee with respect throughout this process.
Preventing Insolvency and Protecting Essential Services
The City of Hollister is implementing significant corrective measures to address a financial crisis that developed over many years.
The experiences of California cities such as Stockton and Vallejo demonstrate the serious consequences of allowing structural financial problems to remain unresolved.
Hollister is determined to confront its challenges before they become irreversible.
The measures being implemented are difficult, but they are intended to prevent insolvency, restore financial stability, and protect the City's ability to deliver essential services over the long term.
Protecting public safety and maintaining essential municipal services remain the City's highest priorities.
The Administration recognizes that these actions will create temporary disruptions and inconvenience. We ask residents, businesses, and community partners for patience and understanding as the City transitions to a financially sustainable operating structure.
A Commitment to Hollister's Future
The City Administration remains confident that, with the leadership of the City Council, the dedication of remaining employees, and the sacrifices being made throughout the organization, Hollister can emerge from this period as a stronger, more efficient, and financially responsible city.
The employees affected by these decisions deserve the community's gratitude. Their service has helped build and sustain the City, and their contributions will not be forgotten.
This is a difficult chapter in Hollister's history, but it does not define our future.
The City is taking action today to ensure that Hollister has a tomorrow.
For updated City department hours of operation, service availability, and official information, residents are encouraged to visit the City's website:
