SFMTA management layoffs aim to ease massive deficit

SFMTA Director Julie Kirschbaum fired 12 managers this week in a major leadership shake-up, aiming to eliminate duplication and confusion as the agency faces a massive budget deficit.

The Facts

SFMTA Director Julie Kirschbaum laid off 12 senior managers as part of an effort to address a projected $322 million budget shortfall. The cuts aim to consolidate overlapping roles, streamline the organizational structure, and reduce administrative expenses. Kirschbaum emphasized these layoffs are necessary to protect frontline transit services from deeper budget cuts, focusing instead on reducing management overhead (SF Chronicle).

The Context

SFMTA faces severe financial strain, projecting a $322 million budget shortfall driven primarily by reduced ridership and lower fare revenues post-pandemic. Director Julie Kirschbaum’s decision to lay off 12 senior managers is part of broader efforts to stabilize the agency’s finances by cutting administrative overhead rather than frontline services.

Kirschbaum's restructuring follows increased scrutiny from city leadership and transit advocates demanding better fiscal accountability and more efficient use of public funds to avoid harmful service reductions for riders. The budget reductions and staff right-sizing are seen as a necessary step before voters are asked to approve a new funding measure for the agency in the November 2026 election.

The GrowSF Take

Kirschbaum’s willingness to streamline operations signals a positive shift toward accountability and effective leadership. Cutting management overhead to preserve transit service is exactly the type of tough but necessary decision we expect city leaders to make.