The IRS is drafting plans to reduce its workforce by up to 50% through layoffs, attrition, and incentivized buyouts, according to sources familiar with the matter. The cuts are part of the Trump administration’s broader effort to shrink the federal workforce through Elon Musk’s Department of Government Efficiency.
The plan includes laying off probationary employees, offering a “deferred resignation program” to most federal workers, and reassigning IRS employees to the Department of Homeland Security (DHS) for immigration enforcement. DHS Secretary Kristi Noem formally requested the transfer in February.
The IRS currently employs about 90,000 workers, 56% of whom are people of color and 65% women. Former IRS Commissioner John Koskinen warned that slashing tens of thousands of jobs would make the agency “dysfunctional.”
Earlier this year, 7,000 probationary IRS employees were already laid off, and buyouts have been offered across federal agencies. However, IRS employees involved in the 2025 tax season were told they cannot accept buyouts until mid-May.
The White House has requested agency reports on workforce reductions by March 13, though it remains unclear when or how the IRS restructuring will be implemented.
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