LANSING, Mich. (WWJ/AP) – Job cuts have been announced at a state agency whose main job is to help create jobs.

According to the head of the Michigan Economic Development Corp., the MEDC is cutting 65 employees in response to financial strain.

READ MORE: Michigan Matters: Helping Young Folks & Cancer Patients

Steve Arwood says remaining employees will be trained to perform additional duties as the agency faces a “very hard budget,” starting Oct 1.

Arwood says the number of employees has already fallen to 307 from 336 since January, mostly through attrition.

READ MORE: Meet These Two Bear Cubs Who Have Become Inseparable At The Detroit Zoo

Why the cuts?

“The state budget’s being squeezed and the agency’s losing some money from Indian casinos,” reported WWJ Lansing Bureau Chief Tim Skubick.

The MEDC warned in August that it faced a steep drop in revenue, partly because of a dispute over payments from the Native American tribe that runs the Gun Lake Casino in Allegan County.

MORE NEWS: Delta Wants Other Airlines To Share ‘No-Fly’ Lists To Help Stop Unruly Passengers

TM and © Copyright 2015 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2015 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.