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Whenever in the judgment of the City Council it becomes necessary in the interest of economy or because the necessity for the position involved no longer exists, the City Council may abolish any position or employment in the Classified Service and discharge or reduce the position or employment. Should such employee or officer holding such position or employment involving all or the major part of the same duties be reinstated or created within two years, the employee or officer discharged or reduced shall be appointed thereto in preference to any other qualified persons on the eligible list for such position.