Arizona’s Department of Economic Security will lay off 5 percent of its workforce. That’s about 400 employees.
The cuts are due to federal budget reductions. Director Michael Wisehart said the move was necessary after other cost-saving steps failed.
Layoffs take effect July 4. More changes are expected as the agency adjusts to a leaner budget.
Arizona DES Lays Off 5 Percent of Staff
Arizona’s Department of Economic Security is cutting around 5 percent of its staff. The layoffs are due to the loss of federal unemployment insurance grants and cost shifts to states.
About 400 to 450 employees are affected. They were notified on June 17. Their last day is July 4.
Not all divisions are impacted. But agency leaders say more changes are likely as budgets shrink.
DES employee Ray Leonard says he’ll cash out retirement to get by. “It’s a poor thing to do, not just to us but to the people who rely on these services,” he said.
The department says it will keep providing core services despite the cuts.