Social Security Administration Announces Plan to Reduce Workforce by 7,000 Employees

March 1, 2025 TruthUSA

The agency is also set to shutter several regional offices, decreasing the total count from 10 to four.

On Friday, the Social Security Administration (SSA) announced plans to terminate approximately 20 percent of its workforce, amounting to around 7,000 employees, in an effort to align with the Trump administration’s cost-reduction initiatives.

The agency indicated that it plans to reduce its workforce from its current figure of about 57,000 to nearly 50,000, particularly targeting “functions and employees who do not directly contribute to mission-critical services.”

The SSA also aims to shut down various regional offices, cutting the number from 10 to four, while also reducing the number of deputy commissioner-level organizations to seven.

Employees have the option to exit the agency through different resignation and retirement programs, including the Voluntary Early Retirement (VERA) and Voluntary Separation Incentive Payments (VSIP).

The SSA has indicated that some employees may face reduction-in-force actions that will eliminate specific organizations and positions. This process may also entail “directed reassignments” of workers to different roles within the agency.

The agency has stated that its cuts will “focus on enhancing customer service by eliminating redundant management layers, minimizing non-essential work, and potentially reallocating employees to customer service roles.”

“In addition, we are seeking efficiencies and other avenues to cut costs across all spending areas, including information technology and contractor expenditures,” the statement noted.

Previously, the SSA announced it would provide incentives as much as $25,000 for those who sign up for the VSIP. The incentive amounts will vary based on the employee’s grade level, with applications due by March 14 and required exit by April 19.

For employees at or below GS-8, the incentive will be $15,000. Those at GS-9 to GS-12 will see a $20,000 incentive, while those at GS-13 and above will be eligible for $25,000, as stated in the announcement.

“All payments will be subject to standard taxes and deductions,” the agency mentioned on February 27.

For those looking to retire early, the VERA program will be available from March 1 to December 31, with the condition that participants must leave the agency by year-end.

The SSA has reiterated its commitment to enforcing operational efficiencies and cost reductions following the executive orders issued by President Donald Trump after his inauguration on January 20.

Numerous government employees have been laid off across various agencies, while others have chosen to leave through a buyout program initiated by the administration. This is part of ongoing efforts by the Department of Government Efficiency, led by Elon Musk, to uncover and eliminate fraud and waste in the federal government.

Recently, the SSA announced the closure of its Office of Transformation, placing the staff from that office on administrative leave as of February 24. Acting commissioner Lee Dudek cited Trump’s directive to abolish “unproductive and inefficient offices” as the reason for the shutdown.

The agency also disbanded the Office of Civil Rights and Equal Opportunity on February 25, labeling it a “redundant office.”

Nancy Altman, president of the nonprofit organization Social Security Works, has voiced objections to the SSA’s workforce reductions, asserting that it will negatively impact Americans and that the agency was already “chronically understaffed.”

“AI chatbots cannot replace the in-person assistance provided by human beings. People apply for Social Security benefits during some of the most vulnerable moments in their lives,” she commented in a February 26 statement.

“Furthermore, many individuals looking for information may struggle to articulate or even comprehend the questions they need to ask.”

Altman cautioned that workforce reductions at the SSA could lead to Americans being deprived of their “hard-earned Social Security benefits.” She mentioned that field offices nationally are set to close, resulting in increased wait times for the agency’s services.

Naveen Athrappully contributed to this report.

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