In February 2025, the Trump administration implemented massive employment layoffs at the IRS in response to the new Department of Government Efficiency’s (DOGE) request to reduce needless federal spending. Rumors are circulating that staff will return to work tomorrow. Other federal employees have also been affected by the employment losses, which have resulted in funding cuts to a range of other federal programs, most recently and controversially USAID.
The IRS lost 6,700 employees in February
The IRS intends to downsize its employment by 25%, according to reports from The Associated Press and The Washington Post. These reductions began in February of this year, when the IRS laid off 6,700 probationary employees with one year or less of service. The IRS Office of Civil Rights and Compliance will also downsize its employment by 75%, with the remaining 25% being merged into the Office of Chief Counsel.
The massive employment losses have sparked widespread criticism as the agency seeks to manage the monumental task of tax season with a diminished personnel. However, DOGE continues to believe that extensive employee job losses are in the best interests of the federal government in terms of reducing needless spending and assisting federal agencies in working more efficiently.
Will the laid-off employees return to work tomorrow?
According to a post on Reddit, the 6,700 probationary staff who were put off in February are scheduled to return to work tomorrow, April 14. According to a Reddit user, the email was delivered to the staff on April 2. The email, as published by CPA Practice Advisor, details how staff have been requested to return to work following recent court orders.
The federal IRS personnel will be reduced by May
However, despite this victory for federal employees, Bloomberg News reported that 18% of the federal IRS staff will be decreased by May 15, following the April 15 tax filing deadline, signaling the end of the tax season. This reduction includes probated employees. Following this, many employees are anxious that they may be laid off again when the April 15 deadline arrives. This comes after the Trump administration requested that all federal agencies submit their plans for mass reductions in force (RIFs) by March 13 of this year.
Following the court orders for the Administration to reinstate the probation employees, several impacted employees got an email informing them that their status had been restored. However, many were advised that they would be placed on paid administrative leave until today, with the expectation that they would return to work tomorrow. The event has led many to question the Administration’s future transparency and communication procedures.
Musk’s engagement in government faces criticism
Following the widespread job cuts and the unconfirmed nature of the probation employees’ positions, Musk and DOGE have faced widespread criticism for his role as a non-federal employee in the federal workforce, particularly in terms of power dynamics and the potential for corporate interests to influence government actions. Musk’s dual role as a private entrepreneur and a key figure in government projects highlights the porous barriers between the public and private spheres. This has raised concerns about how such entanglements may impact public faith in federal agencies and the decision-making process.
Others, however, have welcomed the addition of DOGE, arguing that the advisory group is important to reducing excessive government spending. DOGE has set an ambitious aim of saving $2 trillion in government spending. Furthermore, if these targets are fulfilled, President Trump and Musk intend to distribute 20% of these savings to residents around the country in the form of $5,000 stimulus checks.
