FDIC Layoff Email Reveals 20% Staff Cut in Bold Government Downsizing

An internal email sent Monday reveals that the Federal Deposit Insurance Corporation (FDIC) plans to reduce its workforce by 20%, aiming to cut roughly 1,250 jobs. The memo, obtained by Reuters, details upcoming initiatives like early retirement offers and resignation incentives, warning that layoffs may follow if voluntary exits don’t meet targets. The move aligns with the Trump administration’s sweeping push to slim down federal agencies, a campaign now bolstered by Elon Musk’s Department of Government Efficiency.

While the FDIC has already seen hundreds take early exits, some employees, especially those handling sensitive bank data or resolving failed banks, may not be approved to leave. If not enough staff take the deal, the email states that wider layoffs could begin as soon as May 13. For one of America’s key financial watchdogs, the message is clear: trim down or be trimmed.
Sources