On Friday, the Internal Revenue Service (IRS) started laying off workers, beginning with the agency’s Office of Civil Rights and Compliance. According to an email obtained by news outlets, this is the first step in a much larger plan. The agency is preparing to cut almost 25% of its total staff, according to people familiar with the matter. These job cuts are expected to continue over the next several weeks and could affect multiple departments.
The email said the move is being done to make the IRS more efficient and better at completing its work. However, the Office of Civil Rights will be nearly shut down. The few employees who remain will be moved into the Office of Chief Counsel.
A Plan to Cut Nearly One-Fourth of IRS Workers
The IRS currently has around 100,000 employees. Plans are already in place to reduce the workforce by about 18% to 20% by the middle of May. This round of layoffs is part of that plan.
A spokesperson from the U.S. Treasury Department explained that the job cuts are tied to improvements in how the IRS operates. These improvements include using more advanced technology and streamlining day-to-day tasks. The spokesperson added that this also includes rolling back the extra hiring that happened during the Biden administration. The goal, they said, is to save money, reduce waste, and improve customer service for taxpayers.
Early Retirement Offers and Phased Layoffs
The email sent to IRS workers on Friday mentioned that the layoffs will happen in stages. Some employees will also be offered early retirement starting as soon as next week. This method is meant to give staff a softer way out rather than forcing everyone to leave at once.
This large reduction in force is part of a broader effort to shift how the IRS runs its operations. Some areas will see more automation, while others may be merged or closed down completely. These changes are designed to make the agency faster, leaner, and more modern—but also mean thousands of people could lose their jobs in the process.
IT Security Staff Also Let Go as IRS Feels the Pressure
Another sign of big changes is that the IRS recently placed about 50 IT security staff members on administrative leave. These cuts are believed to be linked to the agency’s ongoing efforts to meet new demands, such as sharing data with other government departments during tax season.
Even though the Trump administration said that layoffs will not affect the teams who handle actual tax return processing, some former IRS officials are worried. One former IRS commissioner told news outlets, “Filing season is delicate, and cutting almost 10% of your workforce right in the middle of it is extremely risky.”
Uncertainty Grows as Leaders Resign
The recent layoffs are happening alongside major leadership changes at the IRS. Earlier this year, more than 4,000 employees accepted offers to resign at a later time. In addition, over 6,600 probationary employees were fired, although many of them were later brought back after court orders. It’s still unclear if these two groups of employees will be affected by the new round of cuts.
Meanwhile, several top leaders at the IRS have either resigned or been demoted since January. This includes the agency’s chief human resources officer, its acting commissioner, and its acting general counsel. These leadership changes have added to the sense of confusion and uncertainty about the future of the IRS and its staff.
