Unleash the Layoffs: Elon Musk's Department of Government Efficiency Slashes Fed Labor Force, IRS among Targets
IRS workforce of approximately 20,000 employees are mulling over retirement incentives
Dive into the drama as 'The Big Money Show' unravels a report revealing that Elon Musk's Department of Government Efficiency (DOGE) has catalyzed a stunning 672% surge in federal job cuts since the initial quarter of last year, with the Internal Revenue Service (IRS) facing the brunt of it.
An insider spills the beans to FOX Business that approximately 20,000 IRS employees are considering an buyout offer extended by the Trump administration, similar to one rolled out earlier in the year across federal agencies. Details from Reuters suggest that this deferred resignation offer allows employees who accept it to be on paid leave until September 30.
Prior to President Donald Trump's second term, the IRS had a workforce of about 100,000. Since then, the administration has fired approximately 7,000 probationary employees, and an additional 5,000 have departed from the IRS in the last three months.
President Joe Biden's administration had added about 20,000 workers to the IRS, attempting to boost tax revenue collection.
However, fiscal watchdog groups caution that such incisive workforce reductions could hamper the IRS' efficiency in processing tax returns and collecting revenue, potentially leading to a broader budget deficit.
Senior advisor Elon Musk, the public figurehead of DOGE, has been at the helm of this controversial initiative. The federal budget deficit exceeded $1.8 trillion in the last fiscal year and is projected to continue to grow due to increasing spending on Social Security, Medicare, and interest on the national debt that surpasses $36 trillion.
The Trump administration's relentless push to streamline the federal bureaucracy—alongside DOGE—has resulted in about 200,000 workers leaving the 2.3-million civilian federal workforce through a combination of buyouts, layoffs, and resignations.
Controversies surround DOGE, with critics arguing that its abrupt implementation leads to operational inefficiencies and despite its efforts to shrink the government, the administration has exerted greater control over economic and social policies through tariffs and other measures.
Although DOGE claims to monitor cost savings from these cuts through a real-time tracking system on its website, specific figures beyond "$700M in daily payments scrutinized" (as of May 2025) remain elusive.
Stay tuned with FOX Business for the latest updates on this evolving situation.
- The Department of Government Efficiency (DOGE), led by Elon Musk, has triggered a significant surge in federal job cuts, especially targeting the Internal Revenue Service (IRS).
- According to a report by FOX Business, around 20,000 IRS employees are pondering over a buyout offer extended by the Trump administration, similar to one implemented across federal agencies earlier in the year.
- The IRS, which had a workforce of about 100,000 prior to President Donald Trump's second term, has seen a reduction of approximately 7,000 probationary employees and an additional 5,000 departures in the last three months.
- President Joe Biden's administration added about 20,000 workers to the IRS to boost tax revenue collection, but fiscal watchdog groups warn that such drastic workforce reductions could impact the IRS' efficiency in processing tax returns and collecting revenue.
- The federal budget deficit exceeded $1.8 trillion in the last fiscal year and is anticipated to continue growing due to rising spending on Social Security, Medicare, and interest on the national debt that surpasses $36 trillion.
- The Trump administration's drive to streamline the federal bureaucracy, in conjunction with DOGE, has resulted in the departure of about 200,000 workers from the 2.3-million civilian federal workforce, primarily through buyouts, layoffs, and resignations.
