# MEDC to Cut 15 Percent of Its Workforce Amid Revenue Decline and Legislative Scrutiny
LANSING, Mich. (September 18) -- The Michigan Economic Development Corporation said Thursday it will reduce its workforce by up to 15 percent through layoffs and the elimination of unfilled positions, a move the agency attributes to declining corporate revenue and a tightened budget.
The announcement, first reported by Crain's Detroit Business, marks one of the most significant workforce reductions in the history of the state's economic development arm, which has generally operated with between 300 and 400 employees in recent years.
MEDC CEO Quentin Messer Jr. said the "difficult decision to execute a workforce reduction" was not a reflection of the staff but a result of financial pressures.
"Our mission to achieve long-term economic prosperity for Michiganders remains as important as ever," Messer said in a statement. "The environment in which we operate continues to evolve rapidly, and the MEDC is not immune to those pressures. The difficult decision to execute a workforce reduction is a result of declining corporate revenue, not a reflection of the important contributions of MEDC staff members who have dedicated years of honest, ethical, and deeply committed work to this organization and the more than 10 million Michiganders we serve."
A MEDC spokeswoman, Danielle Emerson, confirmed the layoffs in an email but did not specify how many of the agency's more than 300 employees would be affected. She said the agency remains focused on supporting small business, investing in communities, growing an innovation economy, and promoting travel and tourism, "while remaining responsive to fiscal reality."
The cuts come at a particularly sensitive moment for the MEDC. Governor Whitmer is currently in Taiwan on her fourth trade mission this year, accompanied by state economic development leaders including Messer. The agency also recently received a request from its own executive committee to provide a list of all active grants or contracts over $250,000 in order to improve oversight of those transactions.
That request follows high-profile investigations into MEDC-administered grants, including a $20 million grant to an Oakland County business whose owner is being prosecuted by the Attorney General's Office.
The relationship between the Michigan Legislature and the MEDC has been strained in recent years. Lawmakers from both parties have questioned the agency's handling of multimillion-dollar business incentive programs and its oversight of controversial earmarks. The Democratic-led Senate and Republican-led House have stripped funding from the Strategic Outreach and Attraction Reserve fund and the 21st Century Jobs fund over the past two years.
Despite those cuts, the MEDC budget approved by its executive committee last week appears to be one of the largest in the last eight years, totaling roughly $114.4 million. Notably, the most recent budget lacked information on the approved number of employees for the fiscal year, and the agency directed The Detroit News to submit a public records request to obtain that figure.
State Rep. Ann Bollin, R-Brighton, chair of the House Appropriations Committee, welcomed the layoffs in a statement released Thursday.
"The old approach of handing out massive incentives and hoping for the best isn't working," Bollin said. "Michigan needs a smarter, more accountable strategy."
The MEDC's executive committee approved the agency's annual budget last week. At the time, committee chair attorney Christina Grossi was unable to say whether the reduced budget would result in layoffs.
"I think they're working through that right now," Grossi said.
The timing of the announcement, coinciding with the governor's active trade mission abroad, raises questions about the agency's ability to support incoming business investment during a critical period for Michigan's economy.
The full scope of the cuts, including which positions will be eliminated and when the reductions will take effect, has not been disclosed. The agency's response to ongoing projects and its capacity to continue supporting business expansions, relocations, and redevelopment efforts across the state remains to be seen.