A top U.S. bank regulator told staff Monday it plans to cut its workforce by roughly 20% as part of the Trump administration's broader efforts to cull the federal workforce.
The Federal Deposit Insurance Corporation told staff in an email it plans to launch several initiatives aimed at reducing the workforce, including early retirement, incentives for resigning, and ultimately layoffs if necessary. The goal is to reduce staffing by about 1,250 people, according to a copy of the email seen by Reuters.
The agency was authorized for nearly 6,900 employees in 2025, according to its most recent annual report.
The effort mirrors similar moves at other government agencies, as President Donald Trump, alongside billionaire Elon Musk's Department of Government Efficiency, move to drastically shrink the size of the federal government.
The FDIC has already seen hundreds of employees agree to resign as part of a government-wide buyout offer, and the agency will offer subsequent opportunities for staff to agree to retire early or take incentives to resign.
However, the email states that the FDIC may reject offers to exit from some employees, including for workers who examine and help resolve failed banks or keep sensitive bank information safe.
The agency would pursue wider involuntary layoffs if necessary sometime after May 13, according to the email.
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