LANSING, MI (AP)-- The Michigan Unemployment Insurance Agency says it's preparing to lay off 255 permanent full-time employees.
The scheduled October 1 layoffs come on the heels of August 31 layoffs of more than 177 part-time temporary workers who were brought in to relieve congestion at the height of the recession.
The Detroit News says the staffing cuts leave about 800 employees, including about 100 answering phones at the agency's Lansing call center.
Critics say the reductions have caused customer inconvenience. State officials say technology and online services will streamline operations, and the 432 layoffs will save $35 million annually. Agency officials say federal funding cuts prompted the staff reductions.
The number of Michigan jobless workers peaked at 537,000 in June 2009. As of August 31 there were 167,348 workers receiving jobless benefits.