In an attempt to reduce federal spending, US President Donald Trump has announced buyout offers to more than 2 million employees. The decision affects roughly two-thirds of the federal workforce and is likely to lead to the greatest single job reduction in US history.
According to a memo from the Office of Personnel Management, the government's human resources agency, the employees who leave their posts voluntarily will receive about eight months of salary until September, provided they choose to do so by February 6.
The offer applies to all federal workers except certain military, postal, or national security personnel.
The federal government employs more than 3 million people, making it the nation's 15th largest workforce. According to Forbes, the largest single job cut by a US firm in American history could result in the sudden loss of over 200,000 jobs if even 10 per cent of workers accept the offer.
In his second term, on his first day in office, Trump issued several executive orders aimed at federal employees, including ones that ended remote work arrangements and required employees to return to work full-time.
The 78-year-old also fired 17 inspectors general from the federal government's largest agencies. At least one Democratic appointee, Michael Horowitz, appointed to the post at the Justice Department by Obama, was spared.
A week into the new administration, at least 56 senior officials from the United States' largest aid and development agency (USAID) were placed on leave as part of a probe into an alleged attempt to hinder Trump's initiatives.
The US unemployment rate has remained relatively low in recent years, standing at 3.6 per cent as of December 2024, indicating a steady labour market.
However, the potential surge of federal employees leaving their positions due to the buyout offers could lead to an increase in unemployment, possibly increasing the rate by hundreds of thousands of people. This could temporarily disrupt the job market and raise questions about the stability seen in recent years.
