President Donald Trump’s administration has successfully implemented a significant reduction in the Internal Revenue Service (IRS) workforce.
Last week, the IRS began the process of cutting its workforce by at least 25%.
In addition to the layoffs, the agency will also eliminate its Office of Civil Rights and Compliance.
In an email sent to employees on Friday, the agency noted that the reductions will “be implemented in phases” and employees will be offered early retirement incentives beginning next week.
Now, approximately 22,000 IRS employees, accounting for about 20% of the agency’s staff, have accepted the administration’s second deferred resignation offer, marking one of the largest workforce reductions in the agency’s history.
This initiative is part of President Trump’s broader strategy to enhance government efficiency and reduce bureaucratic overhead.
The Department of Government Efficiency (DOGE), led by Elon Musk, has been instrumental in executing these reforms, aiming to eliminate wasteful spending and improve inter-agency cooperation.
The deferred resignation program, offered to federal employees, provides a voluntary pathway for those unwilling to align with the administration’s vision.
Participants receive paid administrative leave through September 30, 2025, while relinquishing their duties, allowing for a respectful and orderly transition.
CNBC reported:
About 20,000 Internal Revenue Service employees have expressed interest in accepting the Trump administration’s latest deferred resignation offer, a source familiar with the matter told CNBC on Tuesday.
The agency, which grew to more than 102,000 workers in 2024, would shrink by roughly 20% if all of those staffers ultimately take the buyout offer.
[…]
The looming IRS exodus was revealed on the day of the deadline for Americans to file their income tax returns.
The Federal News Network, citing an internal document, on Tuesday reported that the IRS plans to cut up to 40% of its workforce by the time its reduction-in-force efforts are complete.
Roughly 12,000 IRS staffers and probationary employees have resigned or been laid off since January, according to The New York Times, which reported on the resignation offer earlier Tuesday.
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