Philly Housing Authority to lay off over 300 employees in 2026.

The Philadelphia Housing Authority (PHA) has announced a significant restructuring plan that will result in the layoffs of approximately 300 employees—nearly 25% of its workforce—beginning in January 2026. This decision follows a strategic shift in the agency’s approach to maintenance and repair services for its affordable housing units, wherein the PHA will transition from employing union electricians and carpenters directly to contracting out these services as needed.

The agency, which serves thousands of families in Philadelphia, cited escalating costs associated with its current maintenance model as a primary reason for the layoffs. Currently, maintaining a single unit of traditional public housing costs PHA an estimated ,500 annually. This high expense is attributable to complex work regulations that necessitate multiple union workers for repairs. In contrast, many other multifamily housing providers maintain significantly lower per-unit maintenance costs.

In a recent statement, PHA President and CEO Kelvin Jeremiah emphasized that the agency’s mission is to provide housing, not to serve as a jobs program. He explained that, to fulfill their commitment to increasing affordable housing for those in need, the agency needs to allocate resources efficiently, thereby indicating that a reduction in workforce is a necessary step.

Jeremiah projected that the layoffs could yield an annual cost savings of around million, a crucial factor as PHA looks to maximize its operational efficiency. The restructuring could also impact the broader housing community, as it comes alongside an ambitious .3 billion plan announced earlier this year, aimed at expanding the agency’s housing portfolio by 7,000 units while renovating 13,000 existing units.

The cuts will primarily affect in-house trades workers, although managerial roles, including 33 positions at PHA headquarters, will also be eliminated. Overall, PHA’s workforce will be reduced by about 20%. The agency reiterated that it has engaged with unions throughout this process and that these changes can be implemented without further approvals.

As PHA navigates this significant transition, it remains in discussions with union leaders regarding the implications of the new work rules. While some positions will be reduced, the agency will still retain maintenance technicians, laborers, and painters as direct employees.

With federal funding comprising 93% of its budget, PHA operates within an uncertain political and economic landscape that poses challenges to affordable housing initiatives. Jeremiah remains committed to ensuring that the shifts within PHA do not compromise its ability to execute its expansion plans or serve its tenant base effectively.

Despite the impending layoffs, projections suggest that the ambitious development plan will create around 4,900 jobs annually within the city. The initial layoffs, which will take place in January, are set to include 260 positions, followed by an additional reduction of 116 positions in the summer of 2026. The last significant staff reduction at PHA occurred in 2016, when 14% of its workforce was laid off, primarily impacting administrative roles.

The upcoming changes reflect an evolving landscape in which affordable housing organizations must adapt to fiscal pressures while striving to maintain and improve services for vulnerable populations.