A tearful executive at the U.S. Internal Revenue Service told staffers on Thursday that about 6,000 employees would be fired, a person familiar with the matter said, in a move that would eliminate roughly 6% of the agency's workforce in the midst of the busy tax-filing season.

The cuts are part of President Donald Trump's sweeping downsizing effort that has targeted bank regulators, forest workers, rocket scientists and tens of thousands of other government employees. The effort is being led by tech billionaire Elon Musk, Trump's biggest campaign donor.

Musk was on stage at the Conservative Political Action Conference in National Harbor, Maryland, when Argentine President Javier Milei, known for wielding a chain saw to illustrate his drastic policies slashing government spending, handed him one.

"This is the chain saw for bureaucracy," said Musk, holding the power tool aloft as a stage prop to symbolize the drastic slashing of government jobs.

Labor unions have sued to try to stop the mass firings, under which tens of thousands of federal workers have been told they no longer have a job, but a federal judge in Washington on Thursday ruled that they can continue for now.

Christy Armstrong, IRS director of talent acquisition, teared up as she told employees on a phone call that about 6,000 of their colleagues would be laid off and encouraged them to support each other, a worker who was on the call said.

"She was pretty emotional," the worker said.

The layoffs are expected to total 6,700, according to a person familiar with the matter, and largely target workers at the agency hired as part of an expansion under Democratic President Joe Biden, who had sought to expand enforcement efforts on wealthy taxpayers. Republicans have opposed the expansion, arguing that it would lead to harassment of ordinary Americans.

The tax agency now employs roughly 100,000 people, compared with 80,000 before Biden took office in 2021.

Independent budget analysts had estimated that the staff expansion under Biden would work to boost government revenue and help narrow trillion-dollar budget deficits.

"This will ensure that the IRS is not going after the wealthy and is only an agency that's really focused on the low income," said University of Pittsburgh tax law professor, Philip Hackney, a former IRS lawyer. "It's a travesty."

Those fired include revenue agents, customer-service workers, specialists who hear appeals of tax disputes, and IT workers, and impact employees across all 50 states, sources said. The IRS did not respond to a request for comment.

The IRS has taken a more careful approach to downsizing than other agencies, given that it is in the middle of the tax-filing season. The agency expects to process more than 140 million individual returns by the April 15 filing deadline and will retain several thousand workers deemed critical for that task, one source said.

The Trump administration's federal layoffs have focused on workers across the government who are new to their positions and have fewer protections than longer-tenured employees.

Meanwhile, the Trump White House is also preparing to dissolve the leadership of the U.S. Postal Service and absorb the independent agency into the Commerce Department, the Washington Post reported on Thursday.

Waiting for dismissal email

At the IRS's Kansas City office, probationary workers found all functions had been disabled on their computers except email, which would deliver their dismissal notices, said Shannon Ellis, a local union leader.

"What the American people really need to understand is that the funds that are collected through the Internal Revenue Service, they fund so many programs that we use every day in our society," Ellis told Reuters.

The White House has not said how many of the nation's 2.3 million civil-service workers it wants to fire and has given no numbers on the mass layoffs. Roughly 75,000 took a buyout offer last week.

The campaign has delighted Republicans for culling a federal workforce they view as bloated, corrupt and insufficiently loyal to Trump, while also taking aim at government agencies that regulate big business -- including those that oversee Musk's companies SpaceX, Tesla and Neuralink.

The small unit within the National Highway Traffic Safety Administration that regulates the kind of autonomous cars that Musk says are the future of Tesla is losing nearly half of its staff, the Post reported on Thursday.

Musk's Department of Government Efficiency team has also canceled contracts worth about $8.5 billion involving foreign aid, diversity training and other initiatives opposed by Trump. Both men have set a goal of cutting at least $1 trillion from the $6.7 trillion federal budget, though Trump has said he will not touch popular benefits programs that make up roughly one-third of that total.

Democratic critics have said Trump is exceeding his constitutional authority and hacking away at popular and critical government programs at the expense of legions of middle-class families.

Most Americans worry the cost-cutting could hurt government services, according to a Reuters/Ipsos poll released Thursday.

Some agencies have struggled to comply with the rapid-fire directives Trump has issued since taking office a month ago. Workers who oversee U.S. nuclear weapons were fired and then recalled, while medicines and food exports have been stranded in warehouses by Trump's freeze on foreign aid.

Reuters

Reuters is a news agency founded in 1851 and owned by the Thomson Reuters Corporation based in Toronto, Canada. One of the world's largest wire services, it provides financial news as well as international coverage in over 16 languages to more than 1000 newspapers and 750 broadcasters around the globe.

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