Wednesday, April 30, 2025
The Trump administration has ordered the Internal Revenue Service (IRS) to lay off approximately 6,000 employees as part of a broader effort to reduce spending and increase efficiency.
The Trump administration has directed the Internal Revenue Service (IRS) to terminate approximately 6,000 employees, according to reports. The layoffs, which primarily affect probationary employees deemed non-essential to the current filing season, are part of a broader effort to reduce spending and increase efficiency within the agency.
IRS managers began notifying affected employees on Wednesday, instructing them to report to their offices and return any government-issued equipment. A message obtained by The New York Times stated that the terminations were tied to compliance with an executive order, but provided few additional details.
Shannon Ellis, president of the National Treasury Employees Union, Chapter 66, confirmed the layoffs, saying that probationary employees in the Small Business/Self-Employed Division of the IRS would be removed as of the next day. Ellis expressed uncertainty regarding the specifics of the terminations, including the exact timing and scope.
The layoffs come despite initial expectations that the IRS would receive $79.4 billion in funding under the "Inflation Reduction Act" and hire up to 87,000 additional agents under the Biden-Harris administration. Instead, the agency has been directed to review consulting contracts and eliminate "non-essential" contracts as part of a government-wide initiative to reduce waste and increase efficiency.
Last week, Gavin Kliger, a top staff member at the Department of Government Efficiency, visited the IRS headquarters to conduct a review of the agency. President Trump confirmed that the Department of Government Efficiency would be conducting an audit of the IRS, stating that the agency would be “looked at like everybody else.”
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