CEBU City Mayor Nestor Archival highlighted financial discipline in City Hall, which resulted in a 30 percent manpower reduction, which is a P252.2 million savings for his first 100 days in office, in a report on Thursday, Oct. 16, 2025. He reported how to radically cut costs and solve a budget crisis while simultaneously delivering on ambitious public service promises.
Archival, a first-time mayor, bannered significant fiscal gains, achieved primarily through a sweeping manpower overhaul. At the same time, the report outlined progress on his 10-point agenda covering free dialysis, housing projects, digital traffic systems, and climate resilience. The challenge is to prove that deep cuts won’t compromise the new services being promised.
The financial problem
When Archival took office, the City was facing a reported budget deficit of P6 billion for the current fiscal year. An expected revenue of only P10 billion undercuts the approved budget of P15.6 billion.
However, the administration claims it has already reduced the city’s overall deficit by P832 million in the first three months.
Where the savings came from
The most significant measure was a reduction in the city’s workforce, resulting in a P252.5 million saving in manpower expenses.
Workforce reduction: The total workforce was cut from 8,569 to 6,014 — a decrease of 2,555 positions.
Targeted cuts: Most of the terminations (2,375 positions) occurred in the project-based category, saving P86 million.
Other savings: Fuel expenses were reportedly cut by P3.5 million per month, and the Office of the Vice Mayor generated an additional P480 million in cost reduction.
To increase revenue, the administration will launch a business permit digitalization plan to streamline tax collection and open a new satellite office to boost accessibility for taxpayers.
10-point agenda progress
Despite the focus on cost-cutting, the mayor’s report details progress on 108 projects across his 10-point agenda, which covers health, food security, education, housing, and traffic.
Health and social safety nets
The Guba Community Hospital is undergoing expansion and renovation and now offers X-ray services. Efforts are pushing for free dialysis services in Barangays Talamban and Guadalupe. The Champ medical assistance program guaranteed over P37 million.
Housing and land deals
A critical priority is securing the formal exchange agreement for the 93-1 land swap deal with the Provincial Government before year-end. The City also secured P250 million from the National Government to build multi-rise buildings (MRBs) in Barangay Kamagayan.
Traffic and public safety
A technical working group was formed for the Cebu Bus Rapid Transit (CBRT). E-traffic citation tickets were implemented to eliminate red tape, and an AI-powered, unified command center is planned for emergency and traffic response.
Education and livelihood
The BIR certification requirement was removed for Cebu City scholars to simplify applications. The 24/7 Cebu City Public Library was relaunched. Business plans include a “one-stop shop” aiming for one-day business permit processing.
Why the manpower cuts matter
The decision to cut over 2,500 government positions is a high-stakes move that affects families and the City’s service capacity. The substantial savings directly address the budget deficit, showcasing fiscal responsibility.
However, the cuts, especially among project-based staff, raise the risk that the city’s capacity to implement its ambitious development plans in infrastructure, waste management, or social services might be strained. The administration is betting that efficiency through technology will compensate for the loss of manpower.
What’s next: The year-end deadlines
The coming months will test the administration’s balancing act. Key items to watch before the end of 2025 include:
1. The 93-1 land deal: Formalizing this long-standing, critical agreement.
2. Guba Hospital completion: Meeting the December 2025 target for the renovation.
3. Revenue generation: Whether the new digitalization efforts can successfully boost city revenues to match the development agenda without further deep cuts. (EHP)