Trump Offers Buyouts To 2 Million Federal Employees, Risks Historic Job Cuts

In an effort to reduce federal spending, US President Donald Trump has announced buyout offers to more than 2 million federal employees. This decision, which impacts around two-thirds of the federal workforce, could result in the largest single job reduction in US history.

According to a memo from the Office of Personnel Management, which oversees the government’s human resources, the buyout offer guarantees employees who leave their posts voluntarily a compensation equivalent to eight months of salary. Employees must make their decision to accept the offer by February 6, with the compensation lasting until September.

The offer affects nearly all federal employees, excluding military, postal, and national security personnel. The US federal government employs more than 3 million people, making it the 15th largest workforce in the nation. Should even 10% of the workforce accept the buyout offer, it could lead to the loss of over 200,000 jobs, as reported by Forbes.

This drastic decision follows a series of steps taken by President Trump during his second term. On his first day in office, he issued several executive orders that specifically targeted federal employees. These orders included ending remote work arrangements and mandating a full return to the office. Additionally, he dismissed 17 inspectors general from major federal agencies. One exception to this purge was Michael Horowitz, an Obama-era appointee at the Justice Department.

The government’s efforts to reduce spending could cause significant disruption in the federal workforce. However, the overall unemployment rate in the US remains relatively low, standing at 3.6% as of December 2024. Despite this, the sudden surge in federal employees leaving their positions due to the buyout offers could impact the job market, potentially causing the unemployment rate to rise significantly. This would be a temporary shift, but it raises important questions about the stability of the labor market and the long-term effects on the economy.

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