The Arizona Department of Economic Security announced Tuesday that it had laid off 5% of its workforce.
Affected employees were informed today, according to a news release issued by DES. They were given two-and-a-half weeks notice. Their final day will be July 4.
The news release cited the elimination of federal grants supporting unemployment insurance and the federal government shifting costs to the states, as reasons for the layoffs.
“Implementing a reduction was not what we wanted, but it was necessary considering the current federal budget cuts,” DES Director Michael Wisehart said in the news release. “Our agency is navigating a complex financial landscape shaped by unexpected federal funding reductions and threatened cost shifts to states.
"We have been closely monitoring our fiscal situation with a strong commitment to avoiding staff reductions. Despite implementing cost-saving measures to maintain workforce stability while addressing budget constraints, the financial challenges have persisted, making it impossible to sustain our current staffing levels. We cannot compensate for millions in funding cuts without significant impacts to clients.”
