The United States Internal Revenue Service (IRS) is contemplating a significant downsizing that could see up to half of its 90,000 employees let go, according to a source familiar with the situation.
This proposed reduction would mark the latest in a series of drastic cuts to federal agencies under President Donald Trump’s administration. When questioned about reports of the IRS’s plans to cut its workforce, the source confirmed that the idea is being actively discussed within the agency.
In a similar move, the IRS recently laid off approximately 7,000 probationary employees, joining other federal agencies in making significant reductions.

Since Trump returned to the White House in January, he has prioritised slashing public spending and trimming down the federal bureaucracy, a goal he initially outlined during his presidential campaign. To help implement these cuts, Trump enlisted tech billionaire Elon Musk, his prominent campaign donor and close adviser, to lead the newly established Department of Government Efficiency (DOGE). The department has already been responsible for eliminating thousands of federal positions and disrupting the operations of several agencies.
As part of this effort, Trump has also dismantled the US Agency for International Development (USAID), halting numerous international development and humanitarian projects.