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IRS Plans Massive Workforce Cuts That Could Slash Staff by Half

by thinktank
March 4, 2025
Reading Time: 3 mins read
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IRS Plans Massive Workforce Cuts That Could Slash Staff by Half

IRS Surprises Taxpayers with $1,400 Payments—Are You Eligible?

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The Internal Revenue Service (IRS) is reportedly planning to cut up to 50% of its workforce, marking one of the most significant federal workforce reductions in modern history, according to AP.
The move, part of the Trump administration’s efforts to shrink the federal government, could result in tens of thousands of job losses through layoffs, attrition, and incentivized buyouts, according to sources familiar with the situation.
The cuts are being developed under Elon Musk’s Department of Government Efficiency, a newly established agency tasked with streamlining government operations. The reductions are expected to target probationary employees, employees close to retirement, and others willing to accept buyouts under a new “deferred resignation program.”
The IRS currently employs about 90,000 people nationwide.
The downsizing effort is already underway. In February, roughly 7,000 IRS employees with one year or less of service were laid off, marking the first wave of reductions. More layoffs are expected in the coming months as the administration pushes forward with its broader plan to drastically reduce the size of the federal government.
With tax season already underway, many are left wondering: will fewer IRS workers mean bigger headaches for American taxpayers?

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