The Trump administration’s efforts to streamline the federal workforce have led to a notable reduction in employee numbers, as reported by the Office of Personnel Management (OPM). As of March 31, 2025, the federal workforce shrank by approximately 23,000 employees, from 2,313,216 in September 2024 to 2,289,472. This decline reflects the administration’s push for a leaner government, with significant cuts at agencies like the IRS, which lost 26% of its staff, raising concerns about operational capacity for the 2026 tax season. Legal challenges have slowed some reductions, with court orders keeping tens of thousands of employees on the payroll pending resolution.
The pace of reductions is expected to accelerate sharply in October 2025, driven by the Deferred Resignation Program (DRP), a voluntary separation initiative. Launched in January 2025, the DRP offers federal employees pay and benefits through September 30, 2025, to incentivize resignations and reduce reliance on involuntary terminations. OPM estimates “hundreds of thousands” of employees will exit by October, with early data showing 75,000 employees (about 4% of the workforce) accepting the DRP in its first wave, falling short of the White House’s 5–10% target. A second round saw stronger participation, with the Department of Agriculture reporting 16,000 opt-ins (16% of its workforce) and the Department of Defense approving nearly 21,000 applications. Estimates suggest total separations could range from 100,000 to 200,000, though legal reinstatements of 24,000 employees may adjust final figures.
To track these workforce changes transparently, OPM is modernizing FedScope, its federal employment data platform, with a relaunch planned for fall 2025. Building on a 2023 data improvement initiative, the updated FedScope will feature interactive visuals, comprehensive datasets, and user-friendly tools to address common workforce inquiries. Despite the dissolution of OPM’s Human Capital Data Management and Modernization office, this overhaul aims to provide clear, accessible metrics, enabling data-driven decisions as the administration continues to navigate an ambitious workforce restructuring.
If you’ve been impacted by layoffs or fear you may be in the future, it’s important to know how your benefits work after separation. Speak with a Federal Retirement Consultant (FRC®) who understands your unique federal benefits and can help you prepare for whatever lies ahead.
