Colorado’s state IT overhaul trims 173 jobs to speed up digital services

Colorado’s Governor’s Office of Information Technology announced a realignment that will lay off 173 employees (about 15% of the workforce) to create a leaner, product-oriented delivery model aimed at improving the state’s digital services. The cuts, expected to save roughly $4 million in year one and $8 million annually thereafter, follow sustained negative feedback from auditors and oversight bodies. The transition, led by Sarah Tuneberg as new director while outgoing chief David Edinger exits June 11, emphasizes closer, client-focused teams and faster decision-making; 98 new roles will be created to replace the laid-off positions as the agency shifts toward POD to deliver services like unemployment benefits, SNAP, and tax systems more efficiently.