The Arizona Department of Economic Security (DES) has laid off 5% of its workforce as a result of federal funding reductions. Employees were notified on June 17 and provided with two-and-a-half weeks’ notice, with their final day set for July 4. The layoffs are attributed to the elimination of federal grants supporting unemployment insurance and a shift of costs to state governments.
DES Director Michael Wisehart stated that the decision to reduce staff was unavoidable given the unexpected federal budget cuts. He emphasized the agency’s efforts to maintain workforce stability while addressing financial constraints but noted that the persistent funding challenges made layoffs necessary.
— new from KGUN 9