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The Internal Revenue Service is walking back its earlier plan to slash staff and is instead focusing on filling critical vacancies. After previously aiming to downsize significantly, the agency is now hiring, reassigning staff, and inviting some recently departed workers to return, according to Government Executive.Â
From Downsizing to Regrowth
Earlier this year, the IRS had outlined plans to cut its workforce below 60,000, a dramatic reduction from the more than 100,000 employees on the books after staffing grew under the Biden administration. Between January and May alone, over 26,000 workers left the agency, many through voluntary separation programs.
Despite initial steps toward layoffs, the agency has now acknowledged that certain departments were left too thin. In response, leadership is turning to tools like internal reassignments and rescinding resignation agreements to rebuild mission-critical teams.
Filling the Gaps in Key Areas
Internal memos obtained by managers note that staffing reductions left gaps in expertise. To respond, the IRS will now redeploy resources using multiple strategies. Employees who had agreed to leave under the Deferred Resignation Program are being invited to return, although they won’t face penalties if they choose not to.
The agency is also hiring externally through USAJOBS listings, signaling a renewed push to restore operational capacity in areas that were previously cut too deeply.
Reassignments and Internal Restructuring
The IRS is not only hiring but also redistributing its current workforce. About 50 employees in the Taxpayer Experience Office who had been scheduled for layoffs in June were told their dismissals are canceled. Although their office will not reopen, they will now take on roles elsewhere in the agency.
Similarly, many employees in the IRS’s IT division have been reassigned to report to the Chief Operating Officer. This move, announced without prior notice to direct supervisors, was described as necessary to support top agency priorities.Â
Managers are also being reassigned as revenue agents following a steep decline in that workforce, which lost more than 3,000 agents in just a few months.
A New Hiring Pattern Amid Government Cuts
While the Trump administration has overseen a significant drawdown in federal staffing — around 150,000 workers have exited government roles — the IRS appears to be one of several agencies taking a different approach. Departments like Health and Human Services, Labor, and Justice have also reversed some layoffs or reassigned workers to cover essential services.
The IRS’s recent job postings and reversal of layoffs mark a notable departure from the agency’s earlier stance. When President Trump implemented a federal hiring freeze, the IRS had been expected to maintain it longer than most other agencies. That is no longer the case.
Leadership Turmoil Continues
This workforce rebuilding effort is unfolding alongside continued turnover at the top of the agency. Three senior executives left their roles last week, including the director of online services.Â
The IRS commissioner also departed earlier this month after just two months in office. Treasury Secretary Scott Bessent is now serving as acting head — the sixth individual to lead the IRS since 2021.
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As the IRS tries to modernize and deliver on the administration’s goals, ensuring the right people are in place has become an urgent priority. The agency’s decision to reinvest in its workforce suggests a recognition that too many cuts have compromised its ability to function effectively.
