20,000 job cuts in California

February 17th, 2009 - 3:00 pm ICT by Amrit Rashmisrisethi  

Arnold SchwarzeneggerOn Tuesday, 20,000 state workers will be notified and their jobs may be eliminated, a spokesman for Governor Arnold Schwarzenegger said. Due up on the brink of running out of cash.

The announcement came a day after California lawmakers narrowly failed to pass a US$40 billion budget that would have plugged the state’s deficit with a mix of tax hikes and spending cuts. The layoff notices will affect about 20 percent of state workers. The positions would be eliminated in June in preparation for California’s next fiscal year, which starts in July.

California, is America’s most populous state and the world’s eighth biggest economy, which is now experiencing a dramatic fall in revenues because of the housing downturn, rising unemployment and a sharp pullback in consumer spending.

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