White House formally instructs agencies to prepare for 'large-scale' layoffs
Trump Administration Orders Federal Agencies to Prepare for Large-Scale Layoffs and Restructuring
The Trump administration has directed all federal agencies to immediately begin preparations for major workforce reductions and restructuring, with detailed plans due by March 13, according to a new White House memo obtained by ABC News.
Issued Wednesday morning, the directive—signed by Office of Management and Budget (OMB) Director Russell Vought and Office of Personnel Management (OPM) Chief Charles Ezell—instructs agencies to begin downsizing their workforces and physical footprints.
“Agency Heads shall promptly undertake preparations to initiate large-scale reductions in force (RIFs), consistent with applicable law. Agencies must develop reorganization plans no later than March 13, 2025.”
Focus on Eliminating Non-Essential Functions
The administration is prioritizing the elimination of non-statutory functions while maximizing efficiency in legally required operations. Agencies are encouraged to:
✅ Consolidate duplicative functions
✅ Automate routine tasks using technical solutions
✅ Streamline operations to cut costs
These efforts align with Elon Musk’s public calls for increased government automation.
Exemptions for Critical Roles
The directive excludes certain positions from layoffs, including:
🚔 Law enforcement
🛂 Border security and immigration enforcement
🛡️ National security and public safety roles
🎖️ Military and uniformed personnel (including U.S. Coast Guard, Public Health Service, and NOAA commissioned officers)
Other exemptions include:
📬 U.S. Postal Service
🏛️ Executive Office of the President
📜 Presidential appointees and Senate-confirmed positions
Additionally, agencies handling Social Security, Medicare, and veterans’ health care must seek approval from OMB and OPM before making restructuring changes.
Relocation of Federal Offices from D.C.
By April 14, agencies must submit plans to relocate offices and bureaus from Washington, D.C., and the National Capital Region to less costly locations across the U.S.
FBI Director Kash Patel has already signaled plans to relocate 1,000 employees from FBI headquarters and transfer another 500 personnel to Huntsville, Alabama.
These mass layoffs and relocations could have significant economic impacts on Washington, D.C., Maryland, and Virginia—regions heavily dependent on federal employment.