IRS Starts Layoff Process Amid Major Workforce Cuts

Washington, D.C. — The Internal Revenue Service began issuing layoff notices to its more than 90,000 employees on April 4, 2025, as part of a sweeping reduction in workforce aimed at increasing efficiency across the agency.

According to an email from the IRS Office of Civil Rights and Compliance, this office will be the first to face substantial cuts, losing up to 75% of its workforce during the reduction process. Remaining employees will be reassigned to the Office of Chief Counsel, which is responsible for carrying out the IRS’s statutory duties.

The IRS outlined in its communication that the civil rights office is merely the first department to experience layoffs. “The IRS has begun implementing a Reduction in Force (RIF) that will result in staffing cuts across multiple offices and job categories,” the agency stated in an email obtained by Government Executive. This decision aligns with agency priorities and follows executive orders from former President Trump that called for workforce reductions.

Under President Biden‘s administration, the IRS expanded its workforce after Congress approved an $80 billion funding boost through the Inflation Reduction Act, increasing employee numbers to over 100,000. However, Republicans have since sought to reclaim some of that funding, while Trump has halted much of the remaining budget allocation. It is projected that as many as 20,000 jobs could be eliminated.

The IRS previously dismissed nearly 7,000 new hires and promoted employees during their probationary period, although a court ruling has temporarily ordered their reinstatement. Additionally, around 50 senior executives in the IT department were recently terminated, according to two sources with knowledge of the matter.

As the IRS prepares for these layoffs, the agency is entering its peak season, with the annual tax filing deadline looming just weeks ahead. “This message is only notification that the IRS has begun the RIF process and does not serve as your official notification,” the agency communicated to employees. Specific notifications regarding the layoff phases will be communicated directly to affected offices.

IRS employees who are eligible for early retirement and buyouts will receive details related to those options next week. Currently, all reassignments and relocations have been put on hold, while the human capital office has instructed staff to upload their resumes to an internal portal to assess qualifications for the RIF process.

“We remain committed to sharing information as soon as it becomes available and ensuring all employees have access to resources and support,” the IRS stated in the email. “Thank you for your continued professionalism and commitment to supporting our mission.”

Former IRS commissioner Danny Werfel, appointed by Biden, resigned in January when Trump appointed a successor despite Werfel having two years remaining in his term. Trump nominated former Congressman Billy Long, R-Mo., to lead the agency, though his confirmation is still pending in the Senate. The current administration is also investigating whether undocumented immigrants are accessing certain federal benefits.