The Arizona Department of Economic Security (DES) has announced a reduction of approximately 5% of its workforce due to federal funding cuts. The layoffs, which were communicated to employees on June 17, will see affected staff leave the agency by July 4. The decision stems from the elimination of federal grants supporting unemployment insurance programs and a shift of financial responsibility to state governments.
DES, which supports over 60 programs and services with a team of around 8,900 employees, emphasized that not all divisions within the agency are impacted. Ray Leonard, an employee in the Division for Employment and Rehabilitation, expressed concerns about the layoffs, noting the challenges this poses for both workers and Arizona residents reliant on unemployment assistance. DES Director Michael Wisehart stated that the cuts were unavoidable given the current fiscal climate and ongoing federal budget reductions.
Despite efforts to implement cost-saving measures, the department could not sustain its staffing levels amid significant funding shortfalls.
— new from ABC15 Arizona