SAN DIEGO—Mayor Todd Gloria announced a massive shakeup in city government Tuesday—including Gloria himself taking over the city manager position—as San Diego faces a more-than $250 million budget deficit.

“The measures I am enacting today will significantly cut costs, enhance efficiency and reflect a full implementation of the Strong Mayor form of government,” Gloria said. “The more than $5 million saved will help preserve services for San Diegans—keeping officers on patrol and all of our fire stations in service and fully staffed, as well as enabling us to continue our progress in fixing the roads and getting the homeless off the street.”

The announcement Tuesday morning immediately cut 31 positions from the city government, intended to save around $5.3 million annually. One of those positions slashed was the city’s chief operating officer, a position held by Eric Dargan since his City Council approval in September 2022. Gloria thanked Dargan for his service.

Gloria’s office will absorb the COO position, along with the Department of Government Affairs and the Office of Boards and Commissions.

The structural realignment also includes the folding of the Sustainability and Mobility Department, Department of Race and Equity, Department of Cultural Affairs and Office of Child and Youth Success, the duties of which will all be handled by other departments.

Finally, Gloria eliminated 16 vacant management positions as the city continues an ostensible hiring freeze for non-essential positions.

“San Diegans should know that your city government is making tough calls now, so we can avoid even harder decisions down the road,” Gloria said. “As we move forward, I will continue to lead this city with transparency about where we stand, the will to make the tough yet responsible decisions for our future, and most of all, a steadfast commitment to the people of San Diego.”

Tuesday’s announcement at City Hall came “after months of careful review and consideration of potential reductions and consolidations,” officials said.

Measure E, a one-cent sales tax measure that could have shored up the impending deficit, narrowly failed in November. Gloria discussed the looming $252.2 million deficit during his Jan. 15 State of the City address. As expected, the budget shortfall—comprising around 12 percent of the city’s total spending—made up the majority of that speech.

Gloria said then that San Diegans are natural innovators who will find ways to make things work.

“The stark financial realities we face today will test our resolve,” he said in January. “This is not the time for retreat. This is not the time to slow down. This is the time to double down. We are moving forward.”

Gloria also said it was time for the city to get a fair deal from entities such as the county and Caltrans when it comes to homelessness.

“It’s long past time for all the cities in this county to do their part and not simply rely on you, the taxpayers of this city, to continue to foot the bill,” he said. “My fellow San Diegans, it is my hope that, anytime you see a person on the street suffering from extreme mental illness or addiction, you think of the county of San Diego and ask them: When will they step up to provide the services needed to end this crisis?”

He said police, fire and paramedics remain a top priority for the city despite the structural deficit.