Colorado IT Office Cuts 173 Jobs, Restructures Operations

2026-05-27
Colorado IT Office Cuts 173 Jobs, Restructures Operations

Colorado’s Office of Information Technology (OIT) has announced significant changes, including the layoff of 173 state employees and a complete overhaul of its operating model. The move comes after years of unresolved audit recommendations highlighting issues within the department.

The OIT confirmed the job losses on Tuesday, stating they are part of a broader effort to improve efficiency and address long-standing performance concerns. The restructuring also involves a change in leadership, though details regarding the new leadership team were not immediately released.

According to state officials, the OIT has faced repeated challenges in meeting audit requirements and delivering effective technology services to state agencies. The previous operating model has been deemed unsustainable, contributing to delays and increased costs. The new model aims to streamline processes, enhance accountability, and improve overall performance.

The 173 employees affected by the layoffs represent a significant portion of the OIT's workforce. The state has pledged to provide support services to affected employees, including career counseling and job placement assistance. The exact roles impacted by the layoffs have not been fully disclosed.

The decision to restructure the OIT follows a series of critical reports from the State Auditor’s Office, which have consistently identified weaknesses in the office’s internal controls and project management practices. These audits have repeatedly called for improvements in areas such as cybersecurity, data governance, and IT infrastructure.

State lawmakers have expressed concern over the OIT's performance and the impact of the layoffs on state services. A legislative committee is expected to hold hearings in the coming weeks to review the proposed changes and assess their potential impact. The goal is to ensure the OIT can effectively support the state’s technology needs while adhering to best practices and financial accountability.

The OIT’s overhaul signifies a renewed commitment from state leadership to address the longstanding issues within the department and improve the delivery of critical technology services to Coloradans.

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