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The US Internal Revenue Service (IRS) is set to lay off approximately 6,700 employees on Thursday, amounting to about 7% of its workforce, according to a source familiar with the matter.
The cuts, which come in the middle of tax-filing season, are part of President Donald Trump’s sweeping efforts to shrink the federal government, led by tech billionaire and major Trump donor Elon Musk.
The layoffs primarily target employees hired during former Democratic President Joe Biden’s administration to expand tax enforcement on wealthy individuals.
While Trump’s Republican allies have criticised the initiative, claiming—without evidence—that it would disproportionately impact middle-class Americans and small businesses, the affected employees are largely in their probationary period, making them more vulnerable to dismissal.
The IRS has not officially confirmed the layoffs, but the agency has reportedly taken a more measured approach to downsizing than other federal departments due to its crucial role in tax collection.
The 2025 tax-filing season, which began on January 27, is expected to process over 140 million returns before the April 15 deadline.
Despite the job cuts, the IRS will retain several thousand probationary employees deemed essential for tax return processing and taxpayer support, according to the source.
The dismissals will impact revenue agents, specialised auditors, and IT specialists across all 50 states, Puerto Rico, and Washington, D.C.
Trump’s administration has not disclosed the total number of planned layoffs across the 2.3 million-strong federal workforce.
However, roughly 75,000 employees accepted a buyout offer last week as part of the ongoing effort to streamline government operations.
The workforce reductions have been welcomed by many Republicans, who view federal agencies as bloated and resistant to Trump’s leadership.
Key targets include regulatory bodies overseeing big business and tax collection—agencies that also have jurisdiction over Musk’s companies, including SpaceX, Tesla, and Neuralink.
Musk’s Department of Government Efficiency has also scrapped contracts worth approximately $8.5 billion, cutting funding for foreign aid, diversity training, and other programs opposed by Trump.
The administration has set a goal of slashing at least $1 trillion from the $6.7 trillion federal budget while pledging to preserve popular entitlement programs, which constitute about a third of federal spending.
Democrats have fiercely opposed Trump’s aggressive downsizing, arguing that he is overstepping constitutional authority and gutting vital government programs that support middle-class families.
Boluwatife Enome
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