US: IRS to lay off 6,700 employees today

The United States Internal Revenue Service (IRS) will today Thursday, February 20, 2025, lay off approximately 6,700 employees. 

According to Reuters, the employees affected by the cuts are probationary workers who have typically been with the agency for less than one to two years and have fewer job protections than long-term staff.

The IRS, which employs roughly 100,000 people, will retain around 6,600 probationary employees to help manage the tax season. Those working in customer service and taxpayer advocacy roles have been spared from the cuts for now.

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The layoffs come amid a broader reduction of personnel across the federal government at the direction of President Donald Trump and Elon Musk, who is leading an unprecedented effort to reduce bureaucracy. 

The Office of Personnel Management ordered all federal agencies last week to dismiss probationary employees, though the IRS has taken a more cautious approach due to concerns about maintaining operations ahead of the April 15 tax-filing deadline. 

The agency remains busy for weeks after the deadline, processing returns and refunds for taxpayers.

Despite the measured approach, some senior IRS executives have expressed concerns over whether the agency will be able to process returns efficiently, the person familiar with the matter said. 

The layoffs will impact a variety of roles, including revenue agents, auditors, and IT specialists, with employees in New York, California, Georgia, and Tennessee among the hardest hit.

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