HHS to cut about 10,000 full-time employees

HHS Announces Major Restructuring, Cutting 10,000 Full-Time Employees

Washington, D.C. – March 27, 2025
The U.S. Department of Health and Human Services (HHS) unveiled a sweeping overhaul today, announcing plans to eliminate approximately 10,000 full-time positions across its various agencies. The move, part of a broader restructuring effort under the Trump administration, aims to streamline operations and reduce costs, shrinking the department’s workforce from 82,000 to 62,000 employees. This reduction follows the voluntary departure of another 10,000 workers through early retirement and buyout programs in recent months.

HHS Secretary Robert F. Kennedy Jr., who assumed leadership of the department amid controversy over his views on public health, framed the cuts as a necessary step to refocus the agency on its core mission. “We are realigning the organization with its priorities—reversing the chronic disease epidemic and delivering more for the American people at a lower cost to taxpayers,” Kennedy said in a statement. He emphasized that essential services like Medicare and Medicaid would remain unaffected, though the scale of the layoffs has raised concerns among public health advocates.

The restructuring will impact all corners of HHS, which oversees critical agencies such as the Centers for Disease Control and Prevention (CDC), the Food and Drug Administration (FDA), and the National Institutes of Health (NIH). According to an HHS breakdown, the FDA will see the largest reduction, losing 3,500 employees—about 19% of its workforce—though the department insists that drug, medical device, and food safety reviewers and inspectors will be spared. The CDC will cut 2,400 positions, approximately 18% of its staff, while the NIH will lose 1,200 workers, and the Centers for Medicare and Medicaid Services (CMS) will see a reduction of 300 employees.

In addition to the layoffs, HHS will consolidate its 28 divisions into 15, creating a new entity called the Administration for a Healthy America (AHA). The AHA will centralize functions like addiction services, occupational safety, and environmental health initiatives. The department also plans to halve its regional offices, dropping from 10 to 5, as part of what Kennedy described as an effort to eliminate “redundant units” and improve efficiency.

The cuts are expected to save taxpayers $1.8 billion annually, a figure touted by Kennedy as a win for fiscal responsibility. “This overhaul will be a win-win for taxpayers and for those that HHS serves—that’s the entire American public,” he said in a video address shared by the department. However, he acknowledged the transition would be challenging, noting, “This will be a painful period for HHS.”

Critics have expressed alarm over the potential consequences for public health, particularly as the nation faces ongoing challenges like infectious disease outbreaks and chronic illness. The CDC, already bracing for a workforce reduction, will absorb the Administration for Strategic Preparedness and Response (ASPR), which manages the national emergency stockpile, adding 1,000 employees to its ranks even as it loses 2,400 others. Some worry that downsizing key divisions could weaken the country’s ability to respond to crises.

The announcement comes amid a broader push by the Trump administration to reduce the federal workforce, with the Department of Government Efficiency (DOGE), led informally by Elon Musk, playing a key role in shaping these efforts. Earlier this year, thousands of probationary employees across federal agencies, including HHS, faced layoffs, though some were reinstated following legal challenges.

HHS has offered voluntary separation incentives, including lump-sum payments of up to $25,000, to mitigate the impact on staff. Still, the scale of the cuts has sparked anxiety among employees and prompted questions about morale and operational capacity. “When I arrived, I found that over half of our employees don’t even come to work,” Kennedy claimed, pointing to what he sees as systemic inefficiencies.

As the restructuring unfolds, with layoffs set to take effect as early as May 27, the move is likely to fuel debate over the balance between cost-cutting and maintaining robust public health infrastructure. For now, the department is pressing forward with its vision to “Make America Healthy Again,” even as the path ahead promises disruption for thousands of federal workers and the systems they support.