WASHINGTON (Agencies): The Internal Revenue Service (IRS) is reportedly set to lay off nearly 20,000 employees, amounting to around 25% of its total workforce, as part of an aggressive federal cost-cutting campaign initiated by President Donald Trump, The Washington Post reported on Friday.
According to internal records and sources cited by the paper, the sweeping downsizing includes the elimination of the IRS Office of Civil Rights and Compliance, which is tasked with protecting taxpayers against discrimination in audits, investigations, and broader tax policy. About 130 employees from this division will be let go, while the remainder may be reassigned.
“This action is being taken to increase the efficiency and effectiveness of the IRS,” read an internal email sent to IRS employees, quoted by WaPo.
The layoffs are part of a broader White House plan to cut $2 trillion in federal spending by 2026, spearheaded by the newly formed Department of Government Efficiency (DOGE)—an agency established by President Trump and led by tech billionaire Elon Musk. DOGE’s mandate is to streamline federal operations, reduce bureaucracy, and eliminate what Trump calls “wasteful spending.”
As of January 2025, the IRS employed roughly 100,000 people. It’s unclear whether the 20,000 planned job cuts include the 4,000 staffers who previously accepted deferred resignation offers earlier this year, or the 7,000 probationary employees laid off in February but later reinstated by court orders.
- Wider Cuts Across U.S. Federal Agencies
The IRS is not alone in facing drastic cuts. In March, up to half of the 600 staff at the United States Institute of Peace (USIP) were reportedly dismissed, with some being offered severance or extended health coverage in exchange for legal waivers.
In a separate move, Reuters reported that all jobs at the U.S. Agency for International Development (USAID) are set to be eliminated between July and September, with its missions abroad closing and remaining functions absorbed by the State Department.
These actions signal a significant reorganization of key U.S. government institutions under Trump’s second term, raising concerns over the future of civil rights protections, foreign aid, and peace-building efforts.
More updates are expected as the administration pushes forward with its dramatic restructuring of federal agencies.