From NBCUniversal: 2025-05-16 13:59:00

The Federal Reserve plans to reduce staff by 10% in the next few years, offering deferred resignation to some older employees. Chair Jerome Powell stated the importance of periodically reassessing staffing to align with changing priorities and environments. The move aims to streamline functions and meet the central bank’s mission.

With just under 24,000 employees, the Fed intends to bring staff count below 22,000 through the reduction. The decision follows a push for cost cuts by the Trump administration and Elon Musk’s criticism of the Fed as “absurdly overstaffed.” Powell’s memo did not reference Musk or the Department of Government Efficiency as factors.

The planned staff cuts were revealed in a report by Bloomberg News. The initiative aims to consolidate functions, modernize practices, and right-size the organization to fulfill its statutory mission. Leaders are tasked with finding ways to streamline operations and offer voluntary deferred resignation to eligible employees.

Read more: Federal Reserve will reduce staff by 10% in coming years, Powell memo says