A plan to find $4 billion in savings in the federal budget by 2014-2015 could mean job cuts in Ottawa, says Mayor Jim Watson.

“That has potential to be a significant job loss in the Ottawa economy if it is not handled sensitively,” said Watson yesterday as he reacted to the release of the federal budget and plans for a “strategic and operating review.”

“We’re a public service community and Ottawa and our residents would feel it the most if there are significant cuts,” he said. During the last significant round of job cuts in the public service in  the 1990s city government worked with the feds to soften the blow with buyouts and other programs. Watson said at the time the job losses were counterbalanced by the rise of the technology sector.

Now the economy isn’t so robust, and many who hoped to retire are staying longer because of the toll the financial crisis took on their retirement plans, Watson said.

“We have to make sure our residents are not adversely affected,” he said.