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Arizona Department of Economic Security says 500 jobs will be cut

By and
Updated  June 18, 2025 12:53pm MST
Arizona Dept. of Economic Security
FOX 10 Phoenix
AZDES says its cutting 5% of its workforce

AZDES says its cutting 5% of its workforce

The Arizona Department of Economic Security confirmed to FOX 10 that it will cut about 5% of its workforce, or about 500 jobs. FOX 10's Danielle Miller reports.

The Brief

    • The Arizona Department of Economic Security says it's cutting 5% of its workforce, or about 500 jobs.
    • Employees who are being let go were notified on July 17. Their last day at the agency will be July 4.
    • AZDES says the layoffs are due in part to the elimination of federal grants.

PHOENIX - A major state agency has announced widespread layoffs.

What we know:

The Arizona Department of Economic Security confirmed to FOX 10 that it will cut 5% of its workforce, or about 500 jobs.

AZDES says the cuts are due to the elimination of federal grants supporting unemployment insurance, and the federal government shifting costs to the states.

The department is one of the largest agencies in Arizona. According to its website, AZDES employs about 8,000 workers and provides services for millions of elderly and disabled Arizonans.

The agency also supports vocational training, apprenticeship programs, food assistance programs and child care assistance for low-income families.

What they're saying:

AZDES says workers who were being let go were notified on Tuesday and their final day at the agency will be July 4.

"Our agency is navigating a complex financial landscape shaped by unexpected federal funding reductions and threatened cost shifts to states,"AZDES Director Michael Wisehart said in a statement. "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."

The Source

  • Information for this story was gathered from a news release from the Arizona Department of Economic Security that was sent to FOX 10 on June 17, 2025.

Arizona Dept. of Economic SecurityJobs & UnemploymentPhoenixNews