MEDFORD, Ore. — Southern Oregon’s largest cities are continuing to deal with the economic fallout of the pandemic. NBC5 previously reported both Ashland and Grants Pass were looking to make cuts. Now, Medford is laying off staff.

The city of Medford has announced it will be laying off 12 employees and keeping seven open positions unfilled. The city said since it anticipates lost revenues of at least $5.4 Million since the statewide stay at home order went into effect, it just can’t afford to keep these employees on.

“We were not only looking at the issues with this current budget but issues with the next biennial budget because of projected revenues that will be less than what they were before the pandemic,” Medford City Manager, Brian Sjothun said.

Sjothun says it isn’t just a handful of lay-offs. The city is significantly reducing non-personnel expenses, and department directors are forgoing the future cost of living adjustments and step increases.

“There’ll be no core services that will be reduced, folks won’t notice a difference from these reductions, but we’re also going to have to look at not taking on as much because we just won’t have the personnel to be able to do it,” Sjothun said.

It’s also possible this is just the first step. Sjothun said the city will be evaluating whether more cuts are needed in future budget discussions.

“If things take a downturn and we have to go back in phases and our revenue reduction is even further that’s something we have to look at and it’s the absolute last thing we would want to do,” Sjothun said.

The city says impacted employees were notified on Monday and Tuesday of this week, but will be paid through the 15th with access to full benefits through July 31st.