Massive Federal Workforce Cuts Underway
As the Thursday deadline approaches, the Trump administration is preparing for another round of large-scale federal layoffs. Just a month after terminating over 100,000 government employees, additional reductions are expected, with key departments and agencies already confirming substantial job cuts.
Economic experts express growing concern over the potential impact on the U.S. economy, particularly as Trump’s trade conflicts with Canada and Mexico continue to disrupt stock markets.
Major Federal Agencies Facing Layoffs
A senior Trump administration official confirmed to USA TODAY that the Department of Education will lay off half of its workforce, with employees instructed not to report to the office on Wednesday. Other major agencies affected include:
- NASA – Downsizing three key offices.
- Department of Veterans Affairs – Planning to cut 76,000 employees this summer.
- Environmental Protection Agency (EPA) – Trump has proposed cutting more than half of its staff.
By Thursday, all federal agencies must submit their layoff plans, formally known as a “reduction in force.” Employees could begin receiving notices that their positions will be eliminated within the next 30 to 60 days.
Trump’s Executive Order on Workforce Reductions
On February 11, 2025, President Trump signed an executive order instructing federal agencies to initiate large-scale workforce reductions. The order prioritizes cuts to:
- Offices that are being suspended or closed.
- Programs deemed nonessential during government shutdowns.
- Diversity, equity, and inclusion initiatives.
However, public safety, immigration enforcement, and law enforcement roles are exempt from the layoffs. Additionally, military personnel and positions related to national security and homeland security are shielded from cuts at the discretion of agency heads.
Government Agencies Required to Submit Layoff Plans by March 13
The Office of Personnel Management (OPM), which oversees federal human resources, issued formal guidance requiring agencies to submit their restructuring and layoff plans by March 13. According to the memo, agencies must aim for:
- Significant reductions in full-time positions.
- Less office space utilization.
- Budgetary downsizing.
- Elimination of nonessential functions.
The guidance also suggests that layoffs could take effect even before agencies submit their finalized plans, meaning some employees may receive termination notices sooner than expected.
Impact on Social Security and Medicare
The memo specifies that agencies providing direct services, such as Social Security, Medicare, and veterans’ healthcare, must delay layoffs until reviewed and approved by the Office of Management and Budget (OMB) and OPM to ensure services are not disrupted.
Other exemptions include:
- U.S. Postal Service employees (as they operate independently from the executive branch).
- Executive Office of the President employees.
- Military, border security, immigration enforcement, and public safety personnel.
Veterans Affairs and NASA Layoff Plans Already in Motion
- Department of Veterans Affairs (VA) – A March 4 memo revealed plans to cut 76,000 workers, or about 16% of its workforce. The department aims to finalize its reorganization plan by June 2025, with widespread layoffs expected by September 30, 2025.
- Department of Education – Offered buyouts to employees who accepted by March 3 ahead of significant staff reductions.
- NASA – Informed employees of upcoming layoffs on March 10, including the closure of its Office of the Chief Scientist.
What’s Next?
Federal law requires agencies to provide 60 days’ notice before layoffs take effect. However, OPM has the authority to reduce this to 30 days in certain cases. With the layoff deadline approaching and agencies finalizing their plans, thousands of federal employees could receive termination notices in the coming weeks.
Stay tuned for updates as agencies finalize their workforce reduction plans.
