US tax agency to sack 25% of its employees – WaPo

The Internal Revenue Service will reportedly eliminate its civil rights office as part of the White House’s cost-cutting efforts

The US Internal Revenue Service (IRS) plans to eliminate around 20,000 jobs, The Washington Post reported on Friday, citing internal records and people familiar with the matter. The downsizing of nearly a quarter of the agency’s workforce comes as part of a broader White House cost-cutting campaign.

Shortly after assuming office on January 20, US President Donald Trump launched a program to eliminate “wasteful spending” and bureaucracy across federal agencies.

The Department of Government Efficiency (DOGE), established by Trump and led by Elon Musk, has been pressing ahead with efforts to streamline federal operations in an attempt to cut $2 trillion in spending by 2026.

The IRS will reportedly eliminate its Office of Civil Rights and Compliance, dismissing around 130 employees from a division responsible for protecting taxpayers from discrimination in the tax code, audits, and investigations. The remaining staff of the office is expected to be transferred to other departments.

“This action is being taken to increase the efficiency and effectiveness of the IRS,” an email sent to employees cited by the newspaper reads.

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Over 4,000 employees reportedly accepted deferred resignation offers earlier this year, while an additional 7,000 probationary workers were laid off in February but are being reinstated due to court orders. At least some of those employees have been told they could return to work on April 14, according to the Post.

It remains unclear if the current downsizing includes the staff already targeted earlier this year, the outlet noted, adding that the IRS employed around 100,000 people as of January.

In March, employees at the United States Institute of Peace (USIP) told the Post that the Department of State had fired up to half of the institute’s 600-person staff. Some employees were reportedly offered severance packages or extended health insurance in exchange for signing waivers of their right to sue. USIP was founded by Congress in the mid-1980s with the declared goal of promoting conflict resolution worldwide.

At the same time, Reuters reported, citing an internal memo, that all remaining jobs at the US Agency for International Development (USAID) would be eliminated in July and September. USAID missions worldwide would reportedly be closed, and the agency’s remaining functions would be folded into the State Department.