Gov. Jared Polis’ office announced the leadership shakeup on Wednesday.

The Governor’s Office of Information Technology is laying off more than 170 people and its executive director is stepping down as part of a “large-scale realignment,” the state agency confirmed Wednesday. Gov. Jared Polis’ office announced the leadership shakeup on Wednesday afternoon but did not directly acknowledge the 173 employees being laid off. Executive Director David Edinger will step down June 11, according to the announcement. Sarah Tuneberg, the deputy executive director for digital and delivery, will be his replacement. Tuneberg previously helped Polis’ administration with its COVID-19 response several years ago. In a separate statement, the Office of Information Technology said it was launching a new structure “designed to fundamentally improve how the state designs, builds and maintains the technology Coloradans depend on to access government services.” “This is a heavy day at OIT as we say goodbye to many of our colleagues,” Tuneberg said in the statement. “It’s bittersweet because, at the same time, OIT is taking an important step forward. This next chapter is about genuine transformation, not just a refresh.” The office works on technology services that include delivering SNAP benefits, unemployment insurance and driver’s license renewal, as well as expanding broadband access. The agency has a $373 million annual budget and oversees $1 billion in federal grants. Prior to the layoffs, the agency had 1,150 employees — meaning the cuts affected about 15% of its headcount. The reorganization had been in the works for months, but the scope of the layoffs was unexpected. Earlier in the year, the agency announced it would eliminate 17 mostly vacant positions, according to an internal FAQ about the organizational realignment that was provided to The Denver Post. The FAQ also stated, “We are looking at all options that establish better alignment among people, processes and technology and deliver clear value to our agency partners, customers and Coloradans.” Edinger said in an interview that the earlier cuts were in response to the state’s ongoing budget crunch. The 173 layoffs are explicitly because of the new service model at OIT. The layoffs were mostly targeted at redundant work and management as well as in the Enterprise Project Management Office, which Edinger said was geared toward the old service model. The old way of doing business resulted in low satisfaction scores across agencies and in security flaws as old infrastructure languished, Edinger said. The new model focuses more on results, versus process. As part of the reorganization, the office will also hire to fill 98 new positions focused on the realigned structure. Edinger said the new jobs are different enough that laid-off employees couldn’t just move over, though they are welcome to apply for them. He called layoffs “horrible” and “a last resort,” but necessary for the new organizational structure. “I’ve tried everything else,” Edinger said. “But I’ve come to the conclusion, after two years of analyzing this, that the only way for Colorado to get the OIT it deserves is for a structural change. … I think the legacy I would hope for is that I made the tough decisions so OIT could become the OIT it is needed to be, and so the state has the technology it needs to deliver for the people of Colorado.” State Rep. Brianna Titone, an Arvada Democrat and vice chair of the Joint Technology Committee, said in an interview that she was “surprised” by the layoffs. The committee has legislative oversight authority for the Office of Information Technology. She heard about the decision only on the morning of the announcement. “They said they were restructuring, but my goodness,” Titone said. “How’s anything going to get done? Are they going to hire a bunch of contractors now?” The agency had faced recent security audits that left Titone “very upset,” and she said she was drafting a no-confidence letter regarding Edinger as a result. She also criticized the agency for stashing more than $30 million in a revolving cash fund beyond the agency’s identified needs. In a memo about the reorganization posted by the office, it acknowledged that “OIT is not delivering at the level Coloradans and agency partners need — our legislative oversight entities and agency feedback have all said so directly.” In a statement Wednesday, Colorado WINS Executive Director Hilary Glasgow said the state is treating “its own workforce as disposable.” Colorado WINS is the state employee union, though most of the affected positions were not eligible for union representation. She took particular umbrage at employees being laid off, only for a slew of new positions to open up. “We need to stop creating non-classified positions that exist outside the reach of collective bargaining — and we need to start treating state workers like the investment they are, not a line item to be cut when leadership decides the org chart needs a refresh,” Glasgow said.

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