The U.S. Internal Revenue Service (IRS) is reportedly preparing to eliminate around 20,000 jobs, representing roughly 25% of its workforce, according to The Washington Post. This move is part of a larger initiative by the White House to reduce government spending and bureaucracy.
Shortly after taking office, President Donald Trump launched a campaign aimed at eliminating what he called "wasteful spending" across federal agencies. The Department of Government Efficiency (DOGE), a new initiative spearheaded by Elon Musk, is leading efforts to streamline federal operations, with the goal of slashing $2 trillion in spending by 2026.
As part of these efforts, the IRS is planning to dissolve its Office of Civil Rights and Compliance, which safeguards taxpayers against discrimination during audits and investigations. This office, which currently employs about 130 staff members, will be shut down, and the remaining personnel are expected to be reassigned to other divisions. An email sent to IRS employees, cited by WaPo, outlined that this restructuring is aimed at increasing the agency’s "efficiency and effectiveness."
Additionally, over 4,000 IRS workers took deferred resignation offers earlier this year, and 7,000 probationary employees were laid off in February, though they are expected to be reinstated due to court orders. Some of these workers may return to their positions as soon as April 14.
The IRS, which employed around 100,000 people as of January, has not clarified whether the new job cuts will include the staff already targeted for layoffs earlier this year. The overall reduction will still represent a significant portion of the agency's total workforce.
Meanwhile, other federal agencies are also experiencing substantial layoffs. Employees at the United States Institute of Peace (USIP), an organization established by Congress in the 1980s to promote global conflict resolution, have reported significant staff cuts. The U.S. State Department has laid off as much as half of the 600-person staff at USIP, with some workers offered severance or extended health insurance in exchange for signing waivers to waive their right to sue.
At the same time, Reuters has reported that the U.S. Agency for International Development (USAID) is set to eliminate all remaining positions by the end of September, with its global operations being folded into the State Department.
As these changes take place, it remains to be seen how the downsizing of key agencies will impact their ability to perform critical functions and whether the cost-cutting measures will deliver the intended savings.
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