IRS Workforce Faces 25% Cut Amid Restructuring \ Newslooks \ Washington DC \ Mary Sidiqi \ Evening Edition \ The IRS is laying off up to 20,000 employees — nearly 25% of its workforce — as part of a restructuring effort tied to the Trump administration’s downsizing initiative. Cuts began Friday, heavily affecting the IRS Office of Civil Rights and Compliance. The move follows a larger strategy to streamline federal agencies through the Department of Government Efficiency.
Quick Looks
- Up to 20,000 IRS jobs to be cut, starting now
- Office of Civil Rights and Compliance slashed by 75%
- Remaining employees to be moved under Chief Counsel
- Layoffs part of Elon Musk-led Government Efficiency initiative
- Cuts reverse Biden-era IRS hiring expansions
- 7,000 probationary employees were already terminated in February
- A federal judge has since ordered those employees reinstated
- IRS workers can’t accept buyouts until after April 15
- Treasury says tech improvements will offset staff losses
- The Washington Post first broke news of Friday’s layoffs
Deep Look
The Internal Revenue Service (IRS) is set to undergo one of the most significant workforce reductions in its history, as up to 20,000 employees — approximately 25% of the agency’s total staff — face layoffs under the Trump administration’s aggressive government downsizing plan. The Associated Press confirmed the news on Friday, citing three individuals familiar with the matter, who spoke on condition of anonymity.
The initial wave of layoffs began on Friday and primarily targets the IRS Office of Civil Rights and Compliance. This division, which currently employs fewer than 200 people, will see its workforce reduced by a staggering 75%, with remaining personnel reportedly being transferred to the Office of Chief Counsel. The Civil Rights and Compliance office, once known as the Office of Equity, Diversity, and Inclusion, plays a critical role in overseeing internal fairness, accessibility, and workplace protections.
These dramatic staffing cuts reflect a broader push to reshape the federal workforce by the Trump administration, specifically through the Department of Government Efficiency, which is now headed by billionaire entrepreneur Elon Musk. The department has become the hub of efforts to consolidate federal operations, eliminate redundancy, and, in many cases, shutter or scale back entire departments.
According to administration officials, the cuts are framed as part of a shift toward modernization and automation. A Treasury spokesperson, also speaking anonymously, claimed the changes are part of a long-term strategy to improve IRS operations by introducing “process improvements” and “technology innovations” designed to streamline services and reduce dependency on human labor.
“Rolling back unnecessary hiring and consolidating support services enables us to better serve the American public,” the Treasury representative stated. “This is about efficiency and results.”
However, the announcement is already drawing scrutiny and concern, especially given the timing — less than two weeks before the crucial April 15 tax filing deadline. While most of the layoffs currently affect non-tax-processing roles, critics argue that dismantling core support functions and civil rights oversight could severely impair the agency’s accountability and responsiveness.
Reversal of Biden-Era Hiring Increases
The move is also seen as a stark reversal of the Biden administration’s previous push to strengthen the IRS, especially in the wake of pandemic-related backlogs and enforcement lapses. In 2022, the Inflation Reduction Act allocated billions to bolster IRS staff, improve customer service, and expand audits of wealthy taxpayers.
That expansion is now being unwound. In February, the IRS terminated around 7,000 probationary employees who had worked at the agency for one year or less. These staffers, lacking full civil service protections, were among the first to be targeted under the new workforce reduction initiative. However, a federal judge recently ordered their reinstatement, calling the layoffs premature and potentially unlawful.
Still, the administration continues to explore additional downsizing measures through voluntary buyouts — though IRS employees involved in the 2025 tax season were told they would not be allowed to accept these offers until after April 15, to avoid disrupting critical tax filing operations.
Restructuring Through the Department of Government Efficiency
The IRS reductions are the latest in a series of sweeping changes spearheaded by the Department of Government Efficiency, a new office created under Trump’s current term and led by Elon Musk. The department’s mission is to cut waste, automate redundant roles, and downsize sprawling federal institutions — even if it means dismantling once-vital services.
Through this initiative, entire offices across multiple agencies have either been shuttered or restructured. The IRS is seen as one of the biggest targets due to its size and influence. Musk has previously said that streamlining the tax system is “essential to innovation and personal freedom.”
However, critics say the elimination of key departments — especially ones like Civil Rights and Compliance — could lead to a dangerous erosion of internal oversight and protections for marginalized employees and taxpayers.
Concerns About Oversight, Accountability, and Impact on Services
While the Treasury insists that artificial intelligence and process automation will reduce the need for such staff, many experts argue that human oversight is irreplaceable — especially when dealing with complex tax audits, anti-discrimination compliance, and fraud investigations.
“These layoffs represent more than just cuts — they reflect a dramatic philosophical shift in how the federal government values equity, transparency, and fairness,” said a former IRS division director who requested anonymity. “We’re not just losing workers. We’re losing institutional knowledge.”
Employees within the IRS have expressed confusion and fear, particularly those in support roles that aren’t directly tied to tax return processing but are vital for smooth internal operations. Several offices have reported hiring freezes, while others are bracing for further rounds of reductions later this spring.
What Happens Next?
The long-term impact of these layoffs is still unfolding. Supporters of the initiative believe a leaner, tech-driven IRS could ultimately lead to faster service and less bureaucracy, aligning with the administration’s goals to make government operate “more like a business.”
But labor advocates and watchdog groups worry that the layoffs are short-sighted — potentially trading public accountability for political expediency.
As the April 15 tax filing deadline approaches, the IRS is under intense pressure to maintain operations while dealing with legal battles over reinstated staff and continued downsizing orders from Washington. Whether technology can replace the human infrastructure fast enough — and effectively enough — remains an open question.
For now, thousands of IRS workers are left in limbo, and one of the government’s most crucial agencies faces an uncertain future.
IRS Workforce Faces IRS Workforce Faces
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