A seismic shift looms over the U.S. Treasury Department as officials prepare for extensive employee dismissals.
According to The Hill, the Treasury Department announced plans for significant staff reductions through a reduction in force (RIF) initiative, following President Trump's February executive order aimed at streamlining federal workforce operations.
The announcement came through a Tuesday filing by Trevor Norris, the Treasury's chief human capital officer, who indicated that these layoffs would particularly impact reinstated probationary employees due to their limited seniority status. The department oversees approximately 100,000 employees across various bureaus, including the IRS, Bureau of the Fiscal Service, U.S. Mint, and Office of the Comptroller of the Currency.
The workforce reduction plan stems from President Trump's executive order implementing recommendations from the Department of Government Efficiency. This directive mandates federal agencies to initiate large-scale RIFs and terminate temporary employees and reemployed annuitants in specific areas.
The order specifically targets offices performing non-statutorily mandated functions, with particular emphasis on diversity, equity, and inclusion initiatives. It also affects agency operations that the Trump administration plans to suspend or close.
Trevor Norris outlined the department's approach in his official declaration, stating:
These plans will be tailored for each bureau, and in many cases will require separations of substantial numbers of employees through reductions in force (RIFs). Because RIFs are seniority-based, a RIF in any particular competitive area will disproportionately affect reinstated probationary employees.
The Treasury Department's announcement aligns with similar initiatives across other federal agencies. The Department of Veterans Affairs, Social Security Administration, U.S. Agency for International Development, and Consumer Financial Protection Bureau have all indicated intentions to reduce their workforce.
These agencies must comply with Trump's executive order, which explicitly states:
Agency Heads shall promptly undertake preparations to initiate large-scale reductions in force (RIFs), consistent with applicable law, and to separate from Federal service temporary employees and reemployed annuitants working in areas that will likely be subject to the RIFs.
Some agencies are considering more drastic measures, including complete closure of certain operations to meet the executive order's requirements.
The Treasury's plan particularly affects approximately 6,000 U.S. Department of Agriculture probationary workers who were recently reinstated following a Merit Systems Protection Board order. These employees now face potential termination due to their probationary status.
Norris acknowledged the challenging situation for these workers in court documents, suggesting that some bureaus might find it disruptive to fully restore these employees to their duties given their likely separation during the planned RIF.
The Treasury Department has not provided specific numbers regarding the total positions to be eliminated. However, the scale of the department's operations suggests the impact could be substantial.
The Treasury Department's planned workforce reduction represents a significant step in President Trump's broader initiative to reshape the federal government. The department's implementation of RIFs, particularly affecting probationary employees, signals a major transformation in federal employment practices. The initiative extends beyond the Treasury, affecting multiple federal agencies required to implement similar workforce reductions. As these changes unfold, thousands of federal employees face uncertain futures while agencies work to comply with the executive order's mandates for a streamlined government workforce.
