IRS Reportedly Gears Up To Lay Off Thousands Of Workers Elon Musk's DOGE Looks To Shrink The Tax Agency

The U.S. Internal Revenue Service (IRS) is reportedly on the verge of dismissing thousands of employees, a move that could significantly affect the agency’s operations during the crucial tax-filing season.

What Happened: The IRS is set to lay off a substantial number of workers, including probationary employees, in the coming days, Reuters reported, citing sources familiar with the matter.

The Office of Personnel Management, which supervises federal hiring, has instructed all agencies to terminate their probationary employees who are relatively new to their roles and do not have full job protections.

The exact number of layoffs at the IRS, which expanded to 100,000 employees under the previous administration, remains unconfirmed. This includes approximately 16,000 probationary workers. The cuts will primarily affect probationary employees who either declined a prior buyout offer or were not deemed essential for the ongoing tax season.

See Also: Tesla's $400 Million Armored Cybertruck Deal Under Fire As Short Seller Jim Chanos Questions Elon Musk's DOGE Role In Cutting ‘Wasteful Government Spending'

“They are trying to reduce numbers across the board with no analysis to the impact it will have on operations,” a source told Reuters.

The IRS, currently managing the busy tax season, will remain occupied for months beyond the April 15 filing deadline, handling returns and issuing refunds.

Why It Matters: The layoffs are part of a broader effort led by former President Donald Trump and Elon Musk’s Department Of Government Efficiency (DOGE) to restructure the federal government, which they claim has become overly bloated and inefficient.

This move comes in the wake of a series of significant developments in the U.S. federal workforce. Just days before the IRS layoffs were announced, a federal judge blocked President Trump’s plan to place 2,200 U.S. Agency for International Development employees on paid leave. This decision was seen as a major setback for Trump’s ‘America First’ agenda.

Meanwhile, Sen. Mitch McConnell (R-Ky.) has also been vocal about his concerns over President Trump’s policies, warning of potential price hikes and expressing that Trump’s “aggressive proposals leave big, lingering concerns for American industry and workers.”

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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