Last week, EmployIndy initiated a layoff of 14 employees, which is 20% of the nonprofit’s total staff.
The move is, in part, a response to the end of pandemic-era funding, including nearly $14 million in American Rescue Plan Act funds, as well as some other grants from other funders.
The nonprofit will scale back, but not eliminate, certain programs.
Much of that money EmployIndy is losing was to help Indianapolis residents recover from COVID-19, per president and CEO Marie Mackintosh. EmployIndy spokesperson Sam Hanes noted that rescue plan funding will continue through the end of 2025.
“We knew these grants had an end date on them,” said Mackintosh, “but inevitably, when you’re ramping up programming, you have to add some staff, and then see it come back down.”
Though all EmployIndy’s programs that received Rescue Plan funds existed before the pandemic, the federal funding allowed them to significantly expand its adult education initiative and job training for those facing barriers to employment.
The nonprofit, which doubles as Marion County’s workforce board, is aiming to cut nearly $9 million in funding per year. That’s 28% of its annual budget, according to a letter provided to Mirror Indy.
While the organization knew the funding was ending, its leaders are also preparing for likely cuts to state funding and federal workforce dollars.
“There were funding cliffs we were facing that have been, in some ways, only exacerbated by the external conditions going on at the federal and state level,” Mackintosh said. “We’re working to try to make sure that we retain funding for a lot of our programs.”
In all, EmployIndy plans to reduce its total staff by 28%, which includes both layoffs and not filling vacant positions.
EmployIndy has 67 staff members. For staff who are laid off, their last day of work will be May 9, according to the letter. But employees who lost their jobs will be given preference in applying for 10 open positions.
Those new positions, Mackintosh said, are at a variety of levels and consolidate duties from several previous roles into one.
“It is my true hope that we retain as much of the talent that exists at EmployIndy as we can,” said Mackintosh.
EmployIndy partners with the city to run initiatives such as the city’s summer jobs program.
Emily Kaufmann, spokesperson for Mayor Joe Hogsett, declined to comment on the layoffs and directed Mirror Indy to EmployIndy.
Scaling back, but not eliminating programs
EmployIndy oversees a variety of programs in the Indianapolis area, including skills training, apprenticeships and adult education. Many of EmployIndy’s education and career programs are run at the ground level by community centers and groups, such as the YMCA of Greater Indianapolis.
Because of the cuts, EmployIndy plans to scale back certain community programs — operating a program at 11 or 12 community centers as opposed to 19, for example.
However, Mackintosh said the organization is committed to keeping all its programs active and doing the best they can to serve as many people as they can.
“We will have fewer funds to be able to push out to our community, and we will need fewer program managers on our team who work with those providers to deliver out those services,” said Mackintosh. “There’s just less people that we will serve as a result.”
Claire Rafford covers higher education for Mirror Indy in partnership with Open Campus.
Are you an employee or community member affected by the layoffs? Contact Claire by email claire.rafford@mirrorindy.org, on most social media @clairerafford or on Signal 317-759-0429.
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