Detroit to Lay Off 5% of Workforce; Investigate Insurance, Work Comp Fraud

December 10, 2012

Detroit officials say they’re making plans to lay off 400 to 500 city employees in the new year, roughly 5 percent of the workforce.

The disclosure was made Dec. 7 as Mayor Dave Bing said he has enough votes in the city council next week to approve the hiring of outside firms to look for possible fraud in Detroit’s workers’ compensation program and health insurance.

Detroit is deep in debt and has a budget deficit of more than $200 million. The state likely will conduct a new review of city finances, an exam that could lead to an emergency financial manager.

The city hopes to spare police officers who work the streets from layoffs but there’s no guarantee. Bing compared Detroit’s poor finances to a “house on fire.”

Latest Comments

  • December 11, 2012 at 12:08 pm
    Bonzo says:
    This is what "Forward" looks like
  • December 11, 2012 at 9:49 am
    Agent says:
    A good part of the blame for why many cities have disruption of services and extreme financial problems lie with public sector unions. They negotiate sweetheart deals with hu... read more
  • December 10, 2012 at 6:39 pm
    jfk1971 says:
    Detroit is the proverbial Canary in a Coal Mine. IL/CA/NY and other cities/states dominated by Democrats are just around the corner.
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