Cebu City Mayor Nestor Archival revealed yesterday that the city government was facing a projected budget deficit of P2 billion to P3 billion.

This prompted him to immediately freeze hiring and implement a phased approach to employee contract renewals.

"There are so many, who wanted to be renewed but I told them we are still looking into a P2 billion to P3 billion deficit, if we will renew them, we may unable to pay their salaries," Archival told DAILY TRIBUNE.

He cited that they are focusing on reviewing the city's financial health, with an initial priority on essential services such as solid waste management, health, and daycare operations.

"I will looking at the financial health of the city. This is the gasoline that we can continue to serve," he added.

Cebu City, through its Human Resource Development Office (HRDO), has renewed around 1,400 casual employees based on the list endorsed by the mayor.

Cebu City Hall has more than 8,500 personnel, including regular, casual, and job order (JO) workers.

For now, renewals are limited to casual employees. JO workers are required to submit project proposals through their department heads, which will be subject to mayoral approval before any contracts are renewed.

Among those being considered for special retention are casual employees who have served for 13 years — just two years short of meeting the 15-year requirement for Government Service Insurance System (GSIS) retirement benefits.

Critical personnel such as doctors, nurses, midwives, dentists, and other frontline workers at Cebu City Medical Center (CCMC) and the City Health Department (CHD) have not been affected by the hiring freeze.

During the previous administration of Mayor Raymond Alvin Garcia, there were an estimated 7,000 workers, including 2,000 regulars, 3,000 casuals, and 2,000 JO workers.