LINCOLN— Nebraska’s Department of Economic Development (DED) has experienced significant staff turnover, with at least 61 employees leaving in less than a year and a half while only two departures were involuntary terminations. Full-time staffing fell from roughly 115 positions in May 2025 to about 70 by August 2026. Former employees and the state employees union have raised concerns about budget cuts, workplace policies and leadership changes under Director Maureen Larsen, while DED says much of the downsizing reflects the winding down of pandemic-era programs, which contributed to a $185 million reduction in spending between fiscal years.

Former DED official Sheryl Hiatt also raised concerns about the impact of staffing reductions on rural Nebraska, particularly as regional housing positions have been reduced or moved to Lincoln. DED says some housing responsibilities are being transferred to the Nebraska Investment Finance Authority and that it currently has 33 vacant positions, with some hiring planned. Hiatt and union officials also criticized return-to-office requirements and changes in internal communication, while DED said the changes are intended to comply with state policy, improve productivity and better prioritize the agency’s objectives.

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