The U.S. Internal Revenue Service (IRS) could see up to half of its workforce cut through a combination of layoffs, attrition, and incentivized buyouts, according to a report by the Associated Press (AP).
This move is part of the Trump administration’s broader initiative to shrink the federal workforce, overseen by billionaire Elon Musk’s Department of Government Efficiency (DOGE).
As per the report, the plan includes laying off most probationary employees who have not yet secured civil service protections. Additionally, a “deferred resignation program” may be introduced to encourage voluntary departures and accelerate staff reductions.
However, former IRS Commissioner John Koskinen warned that cutting tens of thousands of employees could leave the agency “dysfunctional.”
Currently, the IRS employs approximately 90,000 workers nationwide. In February, around 7,000 probationary employees with less than a year of service were already laid off, the report stated.
The administration also intends to reassign some IRS employees to the Department of Homeland Security to support immigration enforcement as part of its broader crackdown on illegal immigration.
Federal agencies are expected to submit reports on their workforce reduction plans by March 13. However, it remains uncertain whether the White House will approve the IRS restructuring plan and over what timeline it would be executed, according to a White House memo cited in the report.
