FDIC plans to cut workforce by 20%
Initiatives include early retirement and resignation incentives
If the voluntary withdrawal is insufficient, employees may be laid off
WASHINGTON, April 21 (Reuters) – The top U.S. banking regulator told staff on Monday it plans to cut its workforce by about 20%, part of the Trump administration’s extensive efforts to seize the federal workforce.
Federal Deposit Insurance told employees in an email that it plans to launch several plans aimed at reducing the workforce, including early retirement, incentives for resignation and eventually layoffs if necessary. According to a copy of the email seen by Reuters, the aim is to reduce staffing by about 1,250 people.
According to its latest annual report, the agency received authorization from nearly 6,900 employees in 2025.
This work reflects similar actions by other government agencies, just as President Donald Trump and billionaire Elon Musk’s ministry of efficiency have turned to drastically shrinking the federal government.
The FDIC has seen hundreds of employees agree to resign as part of a government-wide acquisition offer, and the agency will provide employees with subsequent opportunities to agree to retire early or take incentives to resign.
However, the email notes that the FDIC may reject offers to withdraw from certain employees, including reviewing and helping workers who resolve failed banks or ensure the security of sensitive banks’ information.
According to the email, the agency will conduct wider involuntary layoffs sometime after May 13. (Reported by Pete Schroeder; Edited by Sandra Maler)
