NBC New York got a hold of a memo from city budget director which asks the heads of city agencies to "prepare for thousands of layoffs... As many as 7,000 more jobs could be eliminated, City Hall sources said."
The dire financial outlook has been a worry for months and the Mayor has previously asked agencies to make cuts for the current fiscal year and prepare for more during next year. These new cuts "would slash another $350 million" and would be "on top of 15 percent in cuts Bloomberg already has ordered for next year." Budget director Mark Page says in the letter, "Given the efficiencies you have already achieved, this next step would most likely rely heavily on additional headcount reductions, whether through attrition, or, as is more likely, through layoffs."
The Daily Politics points out that this might just be "budget brinksmanship", because "Page notes in the second paragraph that more than $1.6 billion in 'actions' by Albany and the city labor unions ('over which we have little control') would offset the need for such drastic measures." You can read the letter here.