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Indiana Statehouse
Source: (Photo: Abdul-Hakim Shabazz/WIBC)

STATEWIDE – The Indiana Department of Workforce Development (DWD) is undergoing a significant reduction in staff, with 123 employees being laid off due to state and federal budget cuts.

The affected positions span critical areas including administration, workforce programs, and unemployment insurance, raising concerns about the future of services for Hoosiers.

The DWD released a statement emphasizing that the decision was made with “great care and consideration” to maintain fiscal responsibility. This wave of layoffs is part of a broader trend across Indiana state agencies, as a new, tighter state budget, signed into law in May, has led to reduced operational funding for many departments.

While the DWD aims to minimize disruptions to services, the sheer number of affected employees, particularly in client-facing and program-delivery roles, could impact the efficiency and accessibility of unemployment benefits and job placement assistance for Indiana residents.

The budget constraints impacting the DWD are tied to a projected $2 billion revenue shortfall for the state in the upcoming fiscal cycle. State officials have described these reductions as necessary for long-term fiscal stability, while critics warn of potential interruptions to vital public services.

The full extent of the impact on Hoosiers seeking assistance from the Department of Workforce Development will become clearer as these staff reductions are implemented.