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Mass Layoffs at U.S. State Department

Dailyfed Staff

July 15, 2025

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On July 11, the U.S. State Department laid off approximately 1,350 employees as part of a significant reorganization initiated by the Trump administration. This included 1,107 civil service employees and 246 foreign service officers based in the U.S., according to internal notices. The layoffs, termed a “reduction in force” (RIF), were part of a broader plan to streamline the department, which officials described as addressing a “bloated bureaucracy” by eliminating or consolidating over 300 bureaus and offices. The total workforce reduction, including voluntary departures, was estimated at nearly 3,000.

The cuts targeted non-core functions, redundant offices, and areas where efficiencies could be gained, affecting bureaus like those handling global women’s issues, diversity and inclusion, refugees, human rights, and foreign assistance. Critics, including former diplomats and the American Foreign Service Association, argued the layoffs were not merit-based and could weaken U.S. diplomacy, especially amid global crises like conflicts in Ukraine, Gaza, and the Middle East. Affected employees received notices via email, with civil servants given a 60-day separation period and foreign service officers placed on 120-day administrative leave. The process faced criticism for its execution, with some notices sent in error and morale reportedly low due to weeks of uncertainty.

Supporters of the reorganization, including Secretary of State Marco Rubio, defended the cuts as necessary to enhance efficiency and align the department with U.S. priorities. A rally outside the State Department’s headquarters in Washington, D.C., saw supporters and colleagues “clap out” departing employees, with some protests featuring signs urging resistance to the changes.

As the Trump administration continues to make good on its campaign promise to shrink what it perceives to be a bloated and inefficient government, federal employees continue to find themselves in the crosshairs. It has never been more important to understand your complex federal benefits so that you’re prepared for whatever may come your way. Reach out to a Federal Retirement Consultant (FRC®) who can give you a clear snapshot of where you stand and devise a strategy for a secure future.

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