Trump administration to cull 6,700 IRS jobs as part of federal layoffs

By on 20/02/2025 | Updated on 24/02/2025
The exterior of an Internal Revenue Service building with IRS signage.
An Internal Revenue Service building. Alpha Photo via Flickr

The Trump administration is preparing to axe 6,700 jobs at the Internal Revenue Service (IRS) in a bid to shrink the agency and reduce federal government headcount.

Probationary staff, including recent graduates, veterans, and specialised auditors working in IRS offices across all 50 US states, were asked to report to the agency on 20 February with all their equipment, credentials and documents. Managers had received instruction to separate staff in preparation for workforce updates.

An email obtained by news website Government Executive read: “Under an executive order, IRS has been directed to terminate probationary employees who were not deemed as critical to filing season.”

Another email addressed to employees stated: “We understand that coming in on short notice may be an inconvenience, and we truly appreciate your flexibility.” 

An online IRS portal activated on 19 February advised staff to expect more information. It also provided details on their employee rights and obligations, and directed them to a separate platform on which to create a retirement account and explore unemployment options. 

The Trump administration’s government-wide cull hits IRS after a sustained effort by the former president Joe Biden to increase the agency’s capacity and modernise its processes. 

Biden had planned to use funding from the Inflation Reduction Act to achieve this, though the Republican party has since sought to cut this allocation. In fiscal year 2024, IRS’s workforce rose above 100,000 employees, an increase from 80,000 at the start of Biden’s term.

Read more: President Trump offers civil servants eight months’ pay to resign in latest federal government overhaul

Trump administration making headcount reductions

Probationary hires across the federal government are preparing for similar cuts. The Office of Personnel Management (OPM) has advised agencies to terminate employees hired within the last one to two years for whom civil service protections don’t yet apply. It added that limited exceptions would apply on a “case-by-case” basis. The OPM stressed that it was giving “soft guidance” to agencies, which would be expected to proceed “independently”.

An OPM spokesperson commented: “Agencies are taking independent action in light of the recent hiring freeze and in support of the president’s broader efforts to restructure and streamline the federal government better to serve the American people at the highest possible standard.”

Agencies where reducations have already been made include the US Forest Service, which is ready to let go of 2,400 hires, though this excludes firefighters, law enforcement, meteorologists tasked with forecasting avalanches, and bridge inspectors. Meanwhile, the Veterans Affairs Department announced on 13 February that it had axed 1,000 probationary staff. Exemptions were given to employees who provide direct care and benefits to veterans.

Read more: Judge pauses Trump administration plan to put USAID civil servants on leave

Legal pushback over dismissals

Federal officials affected by the reductions are taking legal actions against the changes. Several law firms are mobilising to challenge unlawful dismissals of probationary employees based on their performance. According to reports, thousands of federal workers are set to participate in such lawsuits.

One of the law firms, Alden Law Group, is working in partnership with Democracy Forward to bring a complaint to the Office of Special Counsel (OSC) on behalf of employees from nine different agencies. The OSC’s core responsibility is to investigate prohibited personnel practices in the federal government, including personnel actions taken beyond the concerns of a person’s job-related abilities.

The complaint aims to defend the merit-based system of the federal civil service.

Skye Perryman, president of Democracy Forward – a nonprofit legal services and public policy research organisation based in Washington D.C. – said: “Our civil servants do everything from keeping our food and medicine safe, to securing our borders, to improving our communities.

“We will use all legal tools available to protect them from arbitrary firings designed to politicise our government.”

Government Service Delivery – the new name for GovernmentDX – will bring together global digital government leaders to explore how governments can use tech-driven innovation to deliver high-quality public services. The event will be held at Walter E Washington Convention Center, Washington DC on May 13-14, 2025. Find out more and register your interest here

Trump executive order aims to reduce independent agencies’ powers

Also this week, President Trump signed an executive order intended to align the powers of independent federal agencies and watchdogs, such as the Federal Trade Commission (FTC), the Federal Communications Commission (FCC), and Securities and Exchange Commission (SEC), with the work of the president.

Annoucing the changes, a statement from the White House said that these agencies “issue rules and regulations that cost billions of dollars and implicate some of the most controversial policy matters, and they do so without the review of the democratically elected president”.

Under the new rules, the Trump administration said it will “rein in independent agencies” by ensuring that they all submit draft regulations for White House review, and consult with the White House on their priorities and strategic plans. In addition, the White House will also take a more active role in setting organisational performance standards.

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About Jack Aldane

Jack is a British journalist, cartoonist and podcaster. He graduated from Heythrop College London in 2009 with a BA in philosophy, before living and working in China for three years as a freelance reporter. After training in financial journalism at City University from 2013 to 2014, Jack worked at Bloomberg and Thomson Reuters before moving into editing magazines on global trade and development finance. Shortly after editing opinion writing for UnHerd, he joined the independent think tank ResPublica, where he led a media campaign to change the health and safety requirements around asbestos in UK public buildings. As host and producer of The Booking Club podcast – a conversation series featuring prominent authors and commentators at their favourite restaurants – Jack continues to engage today’s most distinguished thinkers on the biggest problems pertaining to ideology and power in the 21st century. He joined Global Government Forum as its Senior Staff Writer and Community Co-ordinator in 2021.

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