The decision follows Trump’s Feb. 11 executive order asking agencies to prepare for ‘large-scale reductions in force.’
The Social Security Administration (SSA) is set to lay off a large number of employees, with workers being offered incentives of up to $25,000 for voluntary separation, the department said in a Feb. 27 statement.
Offices that perform functions not mandated by statute could be prioritized for workforce reductions, including staffing cuts, reassignments, and abolishing positions and organizations.
SSA will “soon implement agency-wide organizational restructuring that will include significant workforce reductions,” the department said. The agency “may reassign employees from non-mission critical positions to mission critical direct service positions (e.g., field offices, teleservice centers, processing centers). Reassignments may be involuntary and may require retraining for new workloads.”
Employees who do not wish to participate in the restructuring process may choose to leave federal service through various retirement or resignation programs, including Voluntary Separation Incentive Payments (VSIP) and Voluntary Early Retirement Authority (VERA).
The VSIP option is available for employees who want to leave with incentives. It is offered through March 14 on a first-come, first-served basis. Employees must exit the agency no later than April 19.
For staff members up to GS-8, an incentive of $15,000 will be provided. The amount increases to $20,000 for GS-9 to GS-12 and $25,000 for employees in GS-13 and higher.
“All payments are subject to taxes and normal deductions from income,” the agency said.
Employees seeking to retire early can opt for the VERA scheme, which is available from March 1 to Dec. 31. Workers who opt for this must leave the agency by the end of the year.
President Donald Trump signed an executive order on Feb. 11 asking leaders of government agencies to work with the Department of Government Efficiency (DOGE) to prepare for initiating “large-scale reductions in force.”
The order “commences a critical transformation of the federal bureaucracy,” it said.
“By eliminating waste, bloat, and insularity, my administration will empower American families, workers, taxpayers, and our system of government itself,” the order reads.
Staff members from Elon Musk-led DOGE have visited several federal agencies, identifying ways to make them more efficient and cost-effective.
Nancy Altman, president of nonprofit organization Social Security Works, criticized the SSA’s workforce reductions, arguing that the move would harm Americans and that the agency was already “chronically understaffed.”
“AI chatbots are no substitute for in-person service from a human being. Americans apply for Social Security benefits at the most vulnerable times of their lives,” she said. “Moreover, many people who seek information may have trouble articulating or even knowing what questions they need to ask.”
Altman said that if the plan goes through, it will deny many Americans access to their “hard-earned Social Security benefits.” She added that field offices around the country will close and “wait times for the 1-800 number will soar.”
DOGE’s push to boost government efficiency has gained the support of JPMorgan Chase CEO Jamie Dimon, who said he conditionally backs the effort.
“The government’s inefficient, not very competent, and it needs a lot of work,” he recently said, adding that it is “not just waste and fraud” that are the issue but also outcomes of government actions.
“Why are we spending the money on these things? Are we getting what we deserve? What should we change?”
DOGE claims to have saved the government an estimated $65 billion, which includes results from “workforce reductions.”
On Feb. 26, Russell Vought, acting director of the Office of Management and Budget, and Charles Ezell, acting director of the Office of Personnel Management, wrote a memo asking agency heads to finalize their plans for “large-scale” job terminations by mid-March.
“The federal government is costly, inefficient, and deeply in debt,” they wrote in the memo. “At the same time, it is not producing results for the American public. Instead, tax dollars are being siphoned off to fund unproductive and unnecessary programs that benefit radical interest groups while hurting hard-working American citizens.”
When Musk was recently asked by reporters how many of the 2.3 million federal government employees would lose their jobs, he did not provide an exact figure.
“We wish to keep everyone who is doing a job that is essential and doing their job well,” he said. “But if the job is not essential, or they’re not doing the job well, they obviously should not be on the public payroll.”