Lightfoot presented her 2021 budget last month. She said it would include a property tax increase and layoffs to address the city's more than $1 billion budget deficit amid the COVID-19 pandemic.
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It had included $106 million in personnel cuts through eliminating, vacant positions, layoffs and furloughs.
Now money from the sale of cannabis will be used to protect those city jobs.
A joint statement from Mayor Lori Lightfoot and Chicago Federation of Labor President Bob Reiter was released Saturday afternoon.
"After many productive conversations, we have come to an agreement to avert any layoffs of City workers in the 2021 budget. This will ensure Chicago's public workers, the backbone of our neighborhoods, maintain their jobs and health insurance while also protecting the critical services Chicagoans rely on during these unprecedented times. We are committed to continue working together to identify places where we can partner on savings."