US Education Department To Lay Off 50% of Its Staff

Moneylife Digital Team 12 March 2025

Consumer Interest

The US department of education announced on Tuesday that it will lay off nearly half of its staff, signalling the department's potential closure.

This move comes as federal agencies work to meet US president Donald Trump's Thursday deadline for significant workforce reductions.

Education secretary Linda McMahon confirmed that the department's dismantling is in line with Mr Trump's directive. In a post on X, she says, "As part of the department of education's final mission, the department initiated a reduction in force (RIF) impacting nearly 50% of the department's workforce. Today's RIF reflects our commitment to efficiency, accountability, and ensuring that resources are directed where they matter most: to students, parents, and teachers. I appreciate the work of the dedicated public servants and their contributions to the department. This is a significant step toward restoring the greatness of the US education system."

In a statement, the department says it will continue to deliver on all statutory programs that fall under the agency's purview, including formula funding, student loans, Pell Grants, funding for special needs students, and competitive grantmaking.

"All divisions within the department are impacted by the reduction, with some divisions requiring significant reorganisation to better serve students, parents, educators, and taxpayers," it added.

When President Trump was inaugurated, the education department's workforce stood at 4,133 workers. After the actions, the department's workforce will total roughly 2,183 workers.

Included in the reduction in force are nearly 600 employees who accepted voluntary resignation opportunities and retirement over the last seven weeks, including, 259 employees accepted the deferred resignation program and 313 employees accepted the voluntary separation incentive payment.

"Remaining employees impacted by the reduction in force will be placed on administrative leave beginning next Friday, 21 March 2025. Pursuant to regulatory requirements and the department's collective bargaining agreement, all impacted employees will receive full pay and benefits until 9 June 2025, as well as substantial severance pay or retirement benefits based upon their length of service," the department says.

Led by Elon Musk's department of government efficiency (DoGE), the administration's aggressive downsizing has led agencies to offer early retirement incentives.

The education department, responsible for US$1.6trn (trillion) in student loans and the enforcement of school civil rights, now faces an uncertain future. With unions pledging to fight these cuts, tensions are escalating as president Trump's cost-cutting campaign reaches a critical point.

Comments