IRS reportedly plans to cut workforce by 50%

The Internal Revenue Service is developing plans to dramatically reduce its workforce by up to half, according to CNN.

The proposed reduction would be implemented through a combination of layoffs, attrition, and incentivized buyouts as part of the Trump administration’s broader efforts to shrink the federal workforce.

Currently employing approximately 90,000 workers nationwide, the IRS workforce is notably diverse, with people of colour representing 56% of employees and women making up 65% of the staff. The reduction efforts have already begun, with about 7,000 probationary employees with one year or less of service laid off in February.

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The administration’s plan includes a “deferred resignation program” offering buyouts to federal employees, though IRS employees involved in the 2025 tax season were informed they could not accept buyout offers until mid-May, after the taxpayer filing deadline.

Additionally, the Trump administration plans to lend IRS workers to the Department of Homeland Security for immigration enforcement. A February letter from DHS Secretary Kristi Noem to Treasury Secretary Scott Bessent requested IRS workers to assist with ongoing immigration crackdown efforts.

A White House memo sent to federal agencies in late February requires agencies to develop a reduction in force reports by March 13. However, it remains unclear whether the White House will ultimately approve the IRS reorganisation plan or the timeline for its potential implementation.