IRS Plans to Cut Up to Half of Workforce, AP Sources Say
The Internal Revenue Service is drafting plans to reduce its workforce by up to half through a combination of layoffs, attrition, and buyouts, according to two people familiar with the situation. This move is part of the Trump administration's efforts to shrink the size of the federal workforce through various measures. A significant reduction in force could render the IRS "dysfunctional," said John Koskinen, a former IRS commissioner.
The impending layoffs highlight the unintended consequences of a broader trend towards downsizing and streamlining government agencies, which may ultimately compromise essential public services.
How will the long-term impact of this workforce reduction affect the stability and effectiveness of tax collection in the United States, particularly for vulnerable populations?
The Trump administration's plan to cut the Internal Revenue Service's workforce in half could have devastating consequences, including crippled collections and enforcement, slower refunds, and bigger budget deficits. According to tax experts, the move would undo recent efforts to restaff and modernize the IRS, threatening to fundamentally cripple an agency responsible for processing 270 million tax returns each year. The IRS has already laid off thousands of employees as part of Trump's broader effort to slash the federal bureaucracy.
This level of staff reduction could have a disproportionate impact on vulnerable communities that rely heavily on the IRS for assistance with their taxes and other government services.
Will the reduced workforce at the IRS lead to an increase in tax evasion and non-compliance among high-income individuals, exacerbating issues of income inequality?
The U.S. government agency responsible for providing benefits to tens of millions of older Americans plans to reduce its workforce by over 12 percent, citing the need to streamline operations and eliminate non-mission critical functions. The Social Security Administration (SSA) aims to reach a staffing target of 50,000 employees from its current level of approximately 57,000 staff members. This move is part of the Trump administration's broader plan to reduce the size of the federal workforce.
The impact of this restructuring on vulnerable populations, such as low-income retirees and disabled individuals, who rely heavily on SSA services for their daily lives, will likely be significant.
Will the SSA's reduced workforce and organizational structure compromise its ability to effectively administer benefits and provide critical services to seniors in need?
The Department of Veterans Affairs is planning a drastic reduction in staff, with an expected loss of over 80,000 workers, aimed at returning the agency to its staffing levels from 2019. This move has drawn strong condemnation from military veteran groups and Democrats, who see it as a betrayal of those who have served. The cuts will likely have a significant impact on the care provided to veterans, with critics warning that it could put their health benefits in "grave danger".
The scale of these layoffs highlights the consequences of prioritizing ideology over the needs of a vulnerable population, and raises important questions about the role of government in providing essential services.
How will this move shape the future of healthcare for America's veterans, and what implications might it have for other government agencies facing similar restructuring efforts?
The Department of Veterans Affairs will begin mass layoffs, targeting more than 80,000 workers, in an effort to reduce the agency's size by at least a fifth. The planned cuts, which could be finalized by June, have been met with criticism from Democrats and some Republicans, who argue that they threaten veterans' health benefits. The layoffs are part of a broader effort by President Donald Trump and billionaire adviser Elon Musk to slash the federal government's workforce.
This move highlights the challenges faced by veteran-focused agencies in navigating the complexities of government bureaucracy and competing priorities for resources.
How will these cuts affect the delivery of healthcare services to America's veterans, who often rely on VA facilities for critical medical care?
Businesses are reducing hiring plans and preparing for layoffs in response to Rachel Reeves's forthcoming £40bn tax increase, which includes hikes to the National Living Wage and National Insurance. A report indicates that demand for permanent roles has dropped for 18 consecutive months, with many firms citing economic uncertainties and rising payroll costs as reasons for scaling back. The anticipated changes are causing widespread concern, particularly among small and medium-sized enterprises, which may face significant financial strain.
This trend highlights the precarious balance businesses must maintain between regulatory compliance and workforce sustainability, raising questions about the long-term health of the job market.
How might the potential job losses and reduced hiring impact the broader economy and consumer confidence in the coming months?
The Trump administration's Department of Government Efficiency (DOGE) team led by Elon Musk has fired the 18F tech team responsible for building the free tax-filing service and revamping government websites, citing them as "non critical." The move follows a public feud between Musk and the 18F team, with Musk calling them a "far-left" group. This change in leadership may impact the development and maintenance of the IRS's digital services.
The elimination of the 18F team raises concerns about the long-term sustainability and effectiveness of government-led initiatives to improve digital services.
How will this shift in leadership and oversight affect the future of free tax-filing services, particularly for low-income and marginalized communities?
A former top official, Rob Joyce, has warned that mass federal layoffs will have a devastating impact on cybersecurity and national security. The House Select Committee on the Chinese Communist Party has heard concerns from Joyce, who argues that culling workers from federal departments will erode the pipeline of top talent responsible for hunting and eradicating threats. Over 100,000 federal workers have been made redundant or taken retirement as part of the new administration's plans to drastically downsize the federal government workforce.
The widespread elimination of probationary staff could lead to a brain drain in key cybersecurity agencies, making it more challenging to detect and respond to emerging threats.
Will the long-term consequences of this downsizing affect not only national security but also the ability of the US government to address growing global cyber threats?
The U.S. Department of Health and Human Services has informed employees that they can apply for early retirement over the next 10 days as part of a broader effort to downsize the federal bureaucracy. This move is led by President Donald Trump and billionaire Elon Musk, who oversee the so-called Department of Government Efficiency. The agency's restructuring aims to reduce its workforce and improve operational efficiency.
This shift in approach may have significant implications for the future of public service, where dedicated professionals like HHS employees are often seen as the backbone of critical healthcare systems.
What will be the long-term impact on the quality and accessibility of healthcare services when many experienced workers choose to leave their government jobs?
A near-record number of federal workers are facing layoffs as part of cost-cutting measures by Elon Musk's Department of Government Efficiency (DOGE). Gregory House, a disabled veteran who served four years in the U.S. Navy, was unexpectedly terminated for "performance" issues despite receiving a glowing review just six weeks prior to completing his probation. The situation has left thousands of federal workers, including veterans like House, grappling with uncertainty about their future.
The impact of these layoffs on the mental health and well-being of federal workers cannot be overstated, particularly those who have dedicated their lives to public service.
What role will lawmakers play in addressing the root causes of these layoffs and ensuring that employees are protected from such abrupt terminations in the future?
The Office of Personnel Management greeted remote federal workers with balloons, candy, and handshakes on their first day back in the office amid layoffs and cost-cutting measures. Many employees had worked remotely for years, but under President Trump's orders, they were forced to return to the office as part of a broader effort to downsize the federal workforce. The scene was met with dismay by some workers who felt that the welcome-back effort was tone-deaf and mean-spirited.
This shocking display of corporate culture highlights the stark disconnect between the government's rhetoric on public service and its actions on employee treatment.
As the federal government continues to downsize, what will be the long-term consequences for the morale and effectiveness of its remaining workforce?
Layoffs announced by US-employers jumped to levels not seen since the last two recessions amid mass federal government job cuts, canceled contracts, and fears of trade wars. The Department of Government Efficiency (DOGE) is wielding the axe on public spending, an exercise that has resulted in funding freezes, deep spending cuts, and the purging of thousands of federal government workers. The resulting job losses are having a ripple effect across the economy.
The surge in US job cuts during February highlights the unintended consequences of President Trump's administration's policies, which may be disproportionately affecting low-skilled and vulnerable workers.
How will the long-term effects of these layoffs impact the social safety net and the ability of the federal government to address issues such as poverty and inequality?
The U.S. Department of Labor has reinstated about 120 employees who were facing termination as part of the Trump administration's mass firings of recently hired workers, a union said on Friday. The American Federation of Government Employees, the largest federal employee union, said the probationary employees had been reinstated immediately and the department was issuing letters telling them to report back to duty on Monday. This decision reverses earlier actions taken by the Labor Department, which had placed some employees on administrative leave.
The Trump administration's mass firings of newly hired workers reflect a broader trend of using staffing cuts as a tool for executive control, potentially undermining the civil service system and the rights of federal employees.
How will the implications of this policy change impact the long-term stability and effectiveness of the U.S. government?
Autodesk has announced a significant restructuring effort, with 1,350 employees set to be laid off, representing approximately 9% of its workforce. The job cuts are part of the company's efforts to adapt to a shift towards self-service sales and direct billing. By making this change, Autodesk aims to improve customer satisfaction and boost productivity.
The widespread nature of these layoffs highlights the ongoing struggle for tech companies to navigate the evolving landscape of subscription-based services and shifting consumer behaviors.
How will the long-term impact of this restructuring on Autodesk's relationship with its customers and partners be measured, particularly in terms of the potential loss of critical expertise and institutional knowledge?
President Trump's tax plan could reduce federal revenue by $5 trillion to $11.2 trillion over the next decade, according to estimates from the Committee for a Responsible Federal Budget. This plan would effectively increase the nation's debt by eliminating current or anticipated revenue sources and includes extending tax cuts from the 2017 Tax Cuts and Jobs Act. Critics warn that there are severe fiscal consequences, particularly in regard to rising the national debt.
The potential economic growth sparked by Trump's tax plans could be offset by increased inflation and reduced government revenue in other areas, such as healthcare and education.
How will policymakers balance the competing demands of stimulating economic growth with ensuring the long-term solvency of the US debt?
If President Trump waved a magic wand and income taxes disappeared tomorrow, Americans would have more take-home pay to spend. When workers keep more of their funds to live life, it drives growth in all segments of our economy, which means more jobs, more opportunities and a stronger economy. Granted, some of that extra money could get hoovered up by higher-cost goods if tariffs inflate prices on some products.
The impact of eliminating income taxes on job searches may be nuanced, with some industries benefiting from increased spending power, while others are hindered by rising costs, particularly in the context of a potential economic downturn.
How will the widespread adoption of universal basic income or alternative wealth redistribution models mitigate or exacerbate the labor market implications of a tax-free economy?
The U.S. Commerce Department's office overseeing $39 billion of manufacturing subsidies for chipmakers has significantly downsized its workforce, with approximately one-third of its staff let go in a sudden move. The layoffs have been prompted by the new administration's review of the 2022 CHIPS Act projects, which aims to boost domestic semiconductor output. This change marks a significant shift in the agency's priorities and operations.
This mass layoff may signal a broader trend of restructuring within government agencies, where budget constraints and changing priorities can lead to workforce reductions.
What implications will this have for the future of U.S. chip production and national security, particularly as the country seeks to reduce its dependence on foreign supplies?
The White House has walked back President Donald Trump's claim that the Environmental Protection Agency plans to cut 65% of its workforce, saying instead that the agency will cut its spending by 65%. The EPA has already announced significant staff reductions, including terminating nearly 400 probationary employees and placing nearly 200 employees on leave. These changes are part of a broader effort to eliminate "waste, fraud, and abuse" across all government agencies.
The administration's efforts to reduce waste and improve efficiency in the EPA may be seen as a step towards mitigating the negative impacts of climate change, but the effectiveness of these measures remains to be seen.
Will the Trump administration's agenda for reducing environmental spending and staff have long-term consequences for the agency's ability to address pressing environmental issues?
US Agency for International Development workers were given only 15 minutes to collect their personal belongings from the Washington headquarters as part of a drastic reduction in foreign aid announced by President Donald Trump's administration. Over 90% of USAID awards were cut, resulting in thousands of staff being put on leave and contractors terminated. The sudden halt to operations has jeopardized global humanitarian relief efforts and thrown life-saving food and medical aid into chaos.
The Trump administration's slashing of foreign aid programs could have significant implications for US credibility as a leader in global humanitarian efforts, potentially undermining the country's ability to influence international development initiatives.
How will the long-term effects of this drastic reduction in foreign aid funding impact the lives of millions of people around the world who rely on USAID programs to access basic necessities like food and healthcare?
At least a dozen probationary staffers at the Federal Trade Commission were terminated last week, with terminations taking place across the agency. The FTC's staffing cuts follow a familiar playbook driven by Elon Musk's Department of Government Efficiency (DOGE), targeting probationary employees in an indiscriminate manner. The agency's internal equal opportunity office was also cut from six to three staffers.
This staffing wave within the FTC echoes broader government-wide restructuring under DOGE, which has sparked concerns about regulatory oversight and accountability in the tech sector.
What implications might these staff cuts have for the federal government's ability to effectively regulate large corporations like those dominated by Silicon Valley giants?
As President Donald Trump's initiatives, led by Elon Musk's Department of Government Efficiency (DOGE), cut staff and shut down multiple Social Security offices, an already understaffed system — with 7,000 fewer full-time employees and 7 million more beneficiaries than a decade ago — has become a significant concern for Americans. To mitigate the impact of reduced government support, it is crucial to implement effective wealth-building retirement strategies. A key overlooked strategy for reaching a six-figure income in retirement is utilizing a health savings account (HSA).
The growing reliance on HSAs highlights the need for individuals to diversify their retirement savings and consider alternative investment options, potentially reducing their dependence on traditional sources like Social Security.
What role will rising healthcare costs play in shaping the future of HSA usage and, by extension, overall retirement planning strategies for Americans?
A controversial plan by U.S. Senate Republicans to make President Donald Trump's 2017 tax cuts permanent is raising warnings from party fiscal hawks and independent analysts of a potential "debt spiral" that could undermine economic growth. The plan, which bypasses Democratic opposition, would ignore projected revenue loss of more than $4 trillion by claiming that tax policy would remain unaltered. This move has sparked opposition among hardline Republican fiscal conservatives who see it as a way to break the bank.
The push for permanent tax cuts underscores the growing partisan divide on fiscal issues, where lawmakers are increasingly prioritizing short-term economic gains over long-term debt sustainability.
How will this plan impact the future of social safety net programs and other spending priorities in the face of mounting national debt?
The Trump administration's recent layoffs and budget cuts to government agencies risk creating a significant impact on the future of AI research in the US. The National Science Foundation's (NSF) 170-person layoffs, including several AI experts, will inevitably throttle funding for AI research, which has led to numerous tech breakthroughs since 1950. This move could leave fewer staff to award grants and halt project funding, ultimately weakening the American AI talent pipeline.
By prioritizing partnerships with private AI companies over government regulation and oversight, the Trump administration may inadvertently concentrate AI power in the hands of a select few, undermining the long-term competitiveness of US tech industries.
Will this strategy of strategic outsourcing lead to a situation where the US is no longer able to develop its own cutting-edge AI technologies, or will it create new opportunities for collaboration between government and industry?
Small U.S. businesses significantly reduced employment in February and saw a decline in average revenue, indicating pressure on one vulnerable sector of the economy. The smallest firms shed around 125,000 jobs, with the leisure and hospitality industry experiencing a proportionate drop of nearly 1.3%. This trend may signal economic strain developing among households, particularly those in industries sensitive to consumer discretionary spending.
The widespread job losses in small businesses could have far-reaching implications for consumer spending habits, which are closely tied to overall economic health.
Will the ongoing uncertainty surrounding trade policies and tariffs continue to impact the hiring decisions of small business owners, or is there a potential silver lining on the horizon?
About one-third of the staff in the U.S. Commerce Department office overseeing $39 billion of manufacturing subsidies for chipmakers was laid off this week, two sources familiar with the situation said. The layoffs come as the new Trump administration reviews projects awarded under the 2022 U.S. CHIPS Act, a law meant to boost U.S. domestic semiconductor output with grants and loans to companies across the chip industry. The staffing cuts are part of a broader effort to reorganize the office and implement changes mandated by the CHIPS Act.
This move may signal a shift in priorities within the government, as the administration seeks to redefine its approach to semiconductor manufacturing and potentially redirect funding towards more strategic initiatives.
What implications will this restructuring have for the delicate balance between domestic chip production and global supply chain reliability, which is crucial for maintaining U.S. economic competitiveness?
RBC has laid off some employees as a result of changes at its business segments following the C$13.5 billion acquisition of HSBC's domestic business last year. The layoffs were reported to have started earlier this week, affecting various teams including technology and operations, personal banking, and commercial banking. The restructuring aims to better position RBC for future growth opportunities.
The move reflects a broader trend in the financial industry where banks are undergoing significant transformations to stay competitive, raising questions about the impact on employee morale and job security.
How will the ongoing changes at RBC influence its ability to maintain client relationships and deliver personalized banking services in the long term?