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IRS Cuts 20,000 Jobs—Civil Rights Office Faces Major Cuts in Ambitious Restructuring

Sweeping cuts, agency closures, and a more than 10% drop in tax receipts under Trump-era initiatives and Elon Musk’s Department of Government Efficiency present significant challenges ahead of tax season.

April 5, 2025
IRS Cuts 20,000 Jobs—Civil Rights Office Faces Major Cuts in Ambitious Restructuring

IRS reducing its staff by 25%, abolishing the agency's civil rights office [25]

Summary

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Up to 20,000 IRS employees—about 25% of the workforce—may lose their jobs.
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The Civil Rights and Compliance unit experiences nearly 75% staff reduction, with remaining employees relocated to the Office of Chief Counsel.
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The cuts are part of a broader effort, initiated during Trump’s presidency and supported by Elon Musk’s Department of Government Efficiency, to reduce government spending.
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Layoffs of roughly 7,000 probationary employees were halted by a judge earlier, but the agency is still proceeding with new cuts.
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IRS and Treasury leaders highlight technology upgrades and process improvements, though some worry tax enforcement could be negatively affected.

The IRS is set to cut approximately 20,000 jobs—about a quarter of its entire workforce—as part of a significant restructuring just in time for a busy tax season. This major overhaul, which dates back to initiatives started during Trump’s presidency, has sparked heated debate and left many staff members on edge.

A major target of this overhaul is the IRS Office of Civil Rights and Compliance, once known as the Office of Equity, Diversity, and Inclusion. Almost 75% of the team, which totals fewer than 200 employees, could lose their jobs, with those who remain being shifted over to the Office of Chief Counsel. This move is just one part of a wider strategy aimed at cutting government spending—it also includes closing certain agencies, laying off probationary workers, and setting up a deferred resignation program.

IRS cutting its workforce by 25%, eliminating agency's civil ... IRS cutting its workforce by 25%, eliminating agency's civil rights office [25]

Earlier in the year, a court halted layoffs that affected around 7,000 probationary workers. Now, despite that setback, the IRS is charging ahead with fresh rounds of cuts. These changes, being put in motion with guidance from Elon Musk’s Department of Government Efficiency, come with promises that technological upgrades and more efficient processes will help the IRS serve taxpayers more effectively.

An email from HR sent out last Friday explained the “Reduction in Force” in clear terms: this is all about meeting legal requirements, not a reflection on individual performance. Affected employees have been asked to update their resumes on HRConnect so the agency can re-assess everyone's qualifications during this shift.

Critics warn that slashing so many jobs could weaken tax enforcement efforts and lead to a huge drop in revenue—officials even predict that tax receipts might fall by more than 10% compared to the same period in 2024, which could mean losses exceeding $500 billion. Additional changes include a temporary suspension on moving personnel from April 4, a halt on career relocations, and major shake-ups at the top, with key figures such as the acting commissioner, HR chief, and acting general counsel either resigning or being demoted. There are also reports that about 50 IT and cybersecurity experts have been let go, and an office focused on modernization has been closed down.

Even as the nation gears up for tax season, the IRS warns its employees that additional layoffs are likely. This radical restructuring raises tough questions about how much government spending should be cut—and at what cost to the services and protections everyday Americans rely on.