San Francisco Mayor Gavin Newsom announced plans to cut the work week for 20,000 full-time city employees.
He says cutting 2.5 hours a week will save the city $50 million a year. Instead of a 40-hour week, the workers will be paid for 37.5 hours per week.
In order to put his plan into action, Newsom is giving all full-time workers pink slips, or layoff notices.
Newsom's spokesman Tony Winnicker said all of them will be able to keep their job and will immediately be rehired in their same positions as long as they agree to a decrease in hours.
The city has an estimated budget deficit of $522 million for the coming fiscal year.