The IRS is cutting 6,700 jobs, roughly 6% of its workforce, as part of President Donald Trump’s federal downsizing initiative. The move, affecting revenue agents, customer service representatives, and IT workers across all 50 states, comes during the busy tax-filing season. Christy Armstrong, IRS talent acquisition director, became emotional while informing staff of the layoffs.
The workforce reduction primarily targets employees hired under President Joe Biden’s administration, which sought to expand tax enforcement on wealthy individuals. Republicans opposed the expansion, arguing it would burden average taxpayers. With the IRS now employing around 100,000 workers—up from 80,000 in 2021—the layoffs align with broader efforts to reduce government spending.
Trump’s biggest donor, tech billionaire Elon Musk, is leading the initiative through his newly established Department of Government Efficiency. At the Conservative Political Action Conference, Musk symbolized the effort by raising a chainsaw handed to him by Argentina’s President Javier Milei, known for extreme cost-cutting measures.
Labor unions have sued to halt the mass firings, but a Washington judge ruled they can proceed. Many IRS employees await termination emails, with some experiencing restricted access to work functions. Critics argue that defunding the IRS benefits the wealthy while harming public services. Independent analysts warn that cuts may worsen tax collection efforts, increasing budget deficits.
The White House remains vague on the total number of planned layoffs, with 75,000 federal employees already accepting buyouts. While Trump and Musk aim to cut $1 trillion from the $6.7 trillion budget, opponents warn of long-term economic consequences.