3,000 workers sacked in New Orleans

Mr Nagin said it was "with great sadness" that New Orleans was "unable to hold on to some of our dedicated city workers".

The city had "searched high and low" for the funds and had asked for help from the state and federal governments, he said.

"We've talked to local banks and other financial institutions, and we are just not able to put together the financing necessary to continue to maintain our city hall staffing at its current levels," he said.

The mayor described the dismissals as "pretty permanent".
Those workers not contacted to return to work should consider themselves part of the layoff, an official statement said.

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