TIGTA Issues IRS Workforce Reduction Report as of March 2025

According to TIGTA IRS Workforce Reduction Report, Since January 2025, there have been several executive orders to reduce the size of the federal workforce. 

In February 2025, the IRS had approximately 103,000 employees. Since then, more than 11,400 IRS employees either received termination notices as probationary employees or voluntarily resigned, representing an 11% reduction to the agency's workforce. 

This is separate from and in addition to IRS Appeals Staffing Cuts and Hundreds of Deferred Resignations.

Specifically:

• 7,315 probationary employees received termination notices.
• 4,128 employees were approved to accept the Deferred Resignation Program (an additional 522 employees are pending approval).

This is our first report on IRS workforce reductions and it focuses on the probationary employees identified for termination and the employees who voluntarily participated in the initial Deferred Resignation Program. 

We'll periodically update this report to highlight further reductions, including the impacts of the second Deferred Resignation Program and Reductions in Force.

• More than 3,600 IRS agents responsible for audits have been either approved for deferred resignation or terminated, marking a 31% reduction to the agency's revenue agent workforce.
• More than 11,000 IRS employees overall have been approved for voluntary resignation with pay through Sept. 30 or received termination notices during their probationary employment period as of March.
• 7,315 probationary employees received termination notices.
• 4,128 employees were approved to accept voluntary resignations
• Nearly 6,700 terminated probationary employees had been at the agency for one year or less, while 31 employees had been at the agency for more than five years, according to the report.
• Nearly 2,600 of the agency's contact representatives have been laid off or voluntarily resigned. 
• just over 1,600 of tax examiners have been laid off or voluntarily resigned, according to the report. 
• A little over 600 revenue officers have separated from the agency.
• The agency's Small Business/Self Employed business unit's workforce has lost  5,765 employees leaving the agency. 
• Taxpayer services lost just over 1,700 employees. 

Since March, the IRS has indicated further staffing cuts, including 75% of the agency's Office of Civil Rights and Compliance and at the Taxpayer Experience Office and the Office of Equity, Diversity and Inclusion in Taxpayer Services, according to the report.

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