The Archdiocese of Washington will lay off roughly a quarter of its workforce and restructure its operations in a sweeping effort to close a persistent $10 million annual budget shortfall, according to a letter from Cardinal Robert McElroy.
“For the past five years, the archdiocese has had an annual operating deficit of $10 million,” Cardinal McElroy wrote in the June 5 message to the archdiocese’s staff. “This has forced us to draw from financial reserves to cover shortfalls — a practice that is no longer sustainable.”
Effective July 1, the archdiocese will cut about 30 jobs at its pastoral center in Hyattsville, Maryland, which employs about 120 people.
The cardinal pointed to multiple factors behind the financial strain, citing “the financial impacts of the pandemic and the fallout of the [former cardinal and leader of the archdiocese Theodore] McCarrick scandal, coupled with an extended period of inflation and volatile financial markets.”
Other cost-saving measures include leaving several vacant positions unfilled and trimming departmental budgets across the board.
“The only way forward is to take drastic measures to achieve a balanced budget,” Cardinal McElroy said. “This means the archdiocese will need to cut spending, reduce its workforce and restructure departments to accommodate a more streamlined pastoral center.”
Although the layoffs mark a significant change to archdiocesan operations, he stressed that the decision was not tied to performance.
“I apologize profoundly to those who will be losing their jobs,” he wrote. “This process is not a reflection on the quality or importance of your work.”
The archdiocese will provide affected employees with severance packages, extended benefits and outplacement services. Still, the cuts are expected to ripple through Catholic ministries across the region.
“There are many people and families who will be impacted — whether it be a devoted employee who loses his or her job, [or] a remaining co-worker who must take on additional responsibilities,” Cardinal McElroy wrote.
