The IRS is set to lay off as many as 20,000 employees—up to 25% of its workforce—according to sources familiar with the plan. The layoffs began Friday and will start with the agency’s Office of Civil Rights and Compliance, which is expected to be reduced by 75%, with remaining staff transferred to the Office of Chief Counsel.
Fewer than 200 people currently work in that office, formerly known as the Office of Equity, Diversity, and Inclusion. The changes are part of the Trump administration’s broader initiative to shrink the federal government under Elon Musk’s Department of Government Efficiency.
The administration has pursued buyouts, closed agencies, and laid off probationary employees. A Treasury spokesperson said the reductions reflect tech-driven “process improvements” to streamline operations and better serve the public.
In February, around 7,000 probationary IRS employees were told they would lose their jobs, though a federal judge later ordered their reinstatement. Employees involved in the 2025 tax season cannot accept buyouts until after April 15.
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