The US Department of Health and Human Services (HHS) will slash its full-time federal workforce by 10,000 employees, as part of a “dramatic restructuring” plan revealed on Thursday.

The move is in accordance with President Trump’s executive order, “Implementing the President’s ‘Department of Government Efficiency’ Workforce Optimization Initiative,” and will not impact critical services, according to an agency press release.

According to HHS, the downsizing will save taxpayers $1.8 billion per year and streamline functions of the department.

Overall, HHS says its full-time workforce will downsize by 20,000, from 82,000 f/t employees to 62,000 f/t employees, as a result of this 10,000 employee cut combined with 10,000 other eliminations due to early retirement and the Department of Government Efficiency’s “Fork in the Road” initiative, which offered buy-outs to government workers.

Logistically, the plan will reduce HHS regional offices from 10 to five, and consolidate 28 current HHS divisions into 15 new divisions.

The HHS plan will:

  • Create the Administration for a Healthy America (AHA), which will combine multiple agencies:
    • the Office of the Assistant Secretary for Health (OASH), Health Resources and Services Administration (HRSA), Substance Abuse and Mental Health Services Administration (SAMHSA), Agency for Toxic Substances and Disease Registry (ATSDR), and National Institute for Occupational Safety and Health (NIOSH).
  • Transfer the Administration for Strategic Preparedness and Response (ASPR), responsible for national disaster and public health emergency response, to the CDC.
  • Create a new Assistant Secretary for Enforcement to oversee the Departmental Appeals Board (DAB), Office of Medicare Hearings and Appeals (OMHA), and Office for Civil Rights (OCR) to combat waste, fraud, and abuse in federal health programs.
  • Read more about the HHS restructuring at the department’s website.

HHS says Medicare, Medicaid, and other essential health services will remain intact.

“We aren’t just reducing bureaucratic sprawl. We are realigning the organization with its core mission and our new priorities in reversing the chronic disease epidemic,” HHS Secretary Robert F. Kennedy, Jr. said. “This Department will do more – a lot more – at a lower cost to the taxpayer.”

Critics, such as the American Federation of Government Employees (AFGE), said the cuts were “dangerous, irresponsible, and unacceptable.“

The recent mass layoffs at HHS affecting employees at the CDC, FDA, and other federal health agencies are dangerous, irresponsible, and unacceptable. Cutting 10,000 critical public health jobs puts every American at risk — weakening our defenses against disease outbreaks, unsafe medications, and contaminated food. 

Congress and citizens must join us in pushing back. Our health, safety, and security depend on a strong, fully staffed public health system.
via AFGE

According to The Hill, thousands of HHS employees began receiving layoff notices as early as 5:00 a.m. EDT April 1, and the layoffs would reportedly go into effect on June 30, 2025.


Department of Veterans Affairs to Cut 80,000 Jobs

The federal agency in charge of healthcare and benefits for America’s estimated 15.8 million military veterans is reportedly cutting as many as 80,000 workers, according to FoxNews.com.

The cuts by the Department of Veterans Affairs (VA) will reduce its total workforce by 15%, according to VA secretary Doug Collins.

Collins, who has faced criticism for his proposed 15% workforce reduction, confirmed the VA’s goal to cut 80,000 jobs during a “Fox & Friends” interview with Brian Kilmeade on [March 10]. 

Collins has emphasized there will be no cuts to healthcare or benefits for veterans. 
via FoxNews.com

The Associated Press first announced the VA’s workforce reduction plans on March 5th, when an internal memo revealed the department’s goal to cut enough employees to return to 2019 staffing levels of just under 400,000, according to The AP.

The VA already announced cuts of 1,000 employees on February 13 and another 1,400 probationary employees on February 24 — moves its says will enable the department to redirect over $181 million annually ($98 million + $83 million respectively) to healthcare, benefits and services for VA beneficiaries.

One area likely to see cuts is call centers that handle incoming Veteran medical inquiries and scheduling, according to CNN.com.

The call centers that America’s military veterans rely on to schedule appointments and arrange medical care may no longer have a live voice on the other end of the line because the agents who handle the calls are set to be laid off, according to multiple sources familiar with the plans for cutbacks at the Department of Veterans Affairs.

Under the proposal, sources said the agency would move to automation, reducing the need for live agents.
via CNN.com

VA secretary Doug Collins says there will be no cuts to healthcare or benefits to veterans, and the department says it is currently hiring over 300,000 workers for essential services, hires that are exempt from President Trump’s Jan 20 federal hiring freeze.

We’re going to accomplish this without making cuts to healthcare or benefits to veterans and VA beneficiaries. VA will always fulfill its duty to provide veterans, families, caregivers and survivors the healthcare and benefits they have earned. That’s a promise. And while we conduct our review, VA will continue to hire for more than 300,000 mission-critical positions to ensure healthcare and benefits for VA beneficiaries are not impacted, Collins said. 
via FoxNews.com