U.S. Bank Regulator Plans Workforce Cuts

By Pete Schroeder

WASHINGTON (Reuters) – A leading U.S. bank regulator announced on Monday a plan to reduce its workforce by approximately 20%, aligned with the Trump administration’s effort to decrease the federal workforce.

The Federal Deposit Insurance Corporation (FDIC) informed staff via email about various initiatives aimed at achieving this reduction, including early retirement options, incentives for resigning, and potential layoffs if necessary. The target is to cut staffing by about 1,250 employees, as detailed in the email seen by Reuters.

The agency was set to employ nearly 6,900 people by 2025, based on its latest annual report.

This initiative reflects similar actions taken by other government entities as President Donald Trump, along with Elon Musk’s Department of Government Efficiency, aims to significantly reduce the size of the federal government.

The FDIC has already witnessed a significant number of employees opting to resign due to a government-wide buyout offer, and it will continue to provide opportunities for staff to retire early or accept resignation incentives.

However, the email clarifies that the FDIC may decline exit offers from certain employees, particularly those involved in examining and managing failed banks or who safeguard sensitive bank information.

If needed, the agency plans to consider wider involuntary layoffs after May 13, as stated in the email.