DED staff down 43%: Survey shows 54% participation, toxic culture fears

For HR and people leaders, Nebraska Department of Economic Development's 2026 engagement survey is a case study in what happens when downsizing outpaces psychological safety. With full-time headcount down 43% from its May 2025 peak, only 39 employees completed the survey—54% participation—and their anonymous comments reveal fear of retribution, not just low engagement. HR teams everywhere should translate these findings into practice: engagement data gathered in a culture of fear is contaminated data, and headcount cuts without trust-building destroy the employee voice you need to manage the change.

At the Nebraska Department of Economic Development, an agency responsible for attracting jobs and investment, the 2026 State of Nebraska Public Servant Engagement Survey has surfaced a leadership crisis: roughly half of current staffers who responded heavily criticized agency leadership, asserting that management cares more about budget cuts and downsizing than employee welfare. The Nebraska Examiner obtained the anonymous responses through a public records request to the Nebraska Department of Administrative Services. Against the backdrop of a workforce cut from approximately 115 full-time employees in May 2025 to 66 by Sept. 18, 2026 — a 43% reduction — the comments paint an organization in distress. One respondent wrote that 'some days I feel like I could write a 10-page paper on all the ways the agency/organization lack the basic components of an effective organization,' adding that as a private corporation, it would be bankrupt. Another wrote, 'People are the least of their worries. They do not support employees — they question them. Fear is a real problem.' Several described a 'toxic environment' and 'culture of fear,' while multiple staffers said they don't feel comfortable speaking up for fear of losing jobs, with 'opinions... withheld... for fear of retribution.'

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With full-time headcount down 43% from its May 2025 peak, only 39 employees completed the survey—54% participation—and their anonymous comments reveal fear of retribution, not just low engagement.

This is not merely an internal personnel matter. DED is Nebraska's central economic development agency; its ability to execute business recruitment, community development, and incentive programs depends on experienced staff. A 43% headcount decline in 16 months can degrade institutional knowledge and service delivery. Director Maureen Larsen, appointed by Gov. Jim Pillen in July 2025 and formerly his general counsel, has overseen what the reporting calls 'unprecedented downsizing.' The survey was administered by DAS and is optional and anonymous; DAS Director Lee Will said responses are provided to agency leaders as a tool to inform their management. But the participation rate of 54% means roughly 46% of eligible employees did not respond, which in a fear-drenched environment may indicate disengagement or distrust rather than satisfaction. Only 39 employees completed the instrument; with 66 FTE reported in September, that is about 59% of current full-time staff, though DAS's stated agency participation rate may include a different denominator.