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Ottawa City Hall

Mayor Larry O'Brien is delivering on his promise to trim the fat at city hall – and he's starting at the very top.

Two high-ranking city managers saw their jobs eliminated yesterday, while another will leave his post by the end of the year, as six city departments have been merged into three.

The cuts are expected to save the city more than $500,000 in salaries and taxable benefits, and follow the city's announcement earlier this month that it would be saving $25 million by cutting 100 vacant full-time jobs.

Richard Hewitt, deputy city manager in charge of public works, and business transformation director Stephen Finnamore have been handed pink slips effective immediately, while city clerk Pierre Page will take early retirement at the end of the year after 30 years with the municipality.

Mr. Page's responsibilities will now be taken over by city solicitor Rick O'Connor, while deputy city managers Steve Kanellakos and Nancy Schepers will take on Mr. Hewitt's and Mr. Finnamore's duties.

Mr. Kanellakos, formerly responsible for community and protective services, will now oversee city operations, including traffic, parking and business transformation, while Ms. Schepers, who was overseeing planning, transit and environment, will add infrastructure and community sustainability, including water and waste services, to her portfolio.

Council also approved a one-year hiring freeze on managers and administrative staff.

The city is looking to save $113 million by the end of 2010, and earlier Mr. O'Brien had said he hoped to trim 500 jobs by the end of next year, even if it meant lowering service levels.