BBS:      TELESC.NET.BR
Assunto:  DOGE restructuring saw IRS lose 40% of its IT workforce in 2025
De:       Mike Powell
Data:     Tue, 24 Feb 2026 11:13:00 -0500
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Talk about an unwelcome tax cut - DOGE restructuring saw IRS lose 40% of its IT
workforce in 2025

By Efosa Udinmwen published 19 hours ago

Senior technology leadership declined massively during the tech shakeup

    The US IRS lost about 40% of its IT staff during DOGE's 2025
"restructuring"
    Senior technology leadership declined by nearly 80% during the shakeup
    Workforce reductions increased modernization strain and threatened the
timely processing of tax returns

The United States Internal Revenue Service (IRS) has revealed the scale of
disruption it experienced during 2025, with its technology division absorbing
the heaviest losses.

The IRS, which administers federal tax collection in the United States, lost
roughly 40% of its IT workforce and nearly 80% of its senior technology
leadership during a sweeping restructuring effort by the so-called Department
of Government Efficiency (DOGE).

Overall staffing across the agency declined by about one quarter during the
same period.

Federal restructuring and DOGE's impact on the IRS

The changes unfolded as the Trump administration advanced a broad federal
restructuring agenda.  Central to that effort was DOGE, which pushed aggressive
cost reduction measures across agencies, often with little explanation or
reasoning to its actions

Within the IRS, the technology arm experienced deeper cuts than most
operational divisions, with Chief Information Officer Kaschit Pandya describing
the reorganization as the largest internal technology overhaul in two decades.

Pandya said the prior structure relied heavily on siloed departments that
limited coordination and slowed delivery.  Leadership has since established
cross-functional teams designed to manage projects from start to finish without
fragmented handoffs between units.

The IT division supports filing infrastructure, legislative system updates,
cybersecurity controls, and integration with external tax software used by
millions of Americans.

A report from the US Treasury Inspector General for Tax Administration warned
that the agency was already behind in processing paper returns digitally before
staffing reductions increased pressure.

The watchdog also noted risks tied to implementing inflation adjustments and
newly enacted tax provisions ahead of the 2026 filing season.

At the start of 2025, the IT division included roughly 8,500 employees, but by
October it had 7,135 - a decline of about 16% based on official headcount
data.

Pandya has said total IT losses during the broader restructuring reached
approximately 40%, a figure that may include separations, leadership removals,
and reassignments beyond the October headcount comparison.

Reports indicate that, as part of the reorganization, 1,000 tech specialists
were reassigned to deliver frontline services during the US tax season, a
redistribution which raised internal concerns about whether modernization
priorities could remain on schedule as seasonal demands increased.

Against this backdrop of staffing losses and modernization strain, agency
leadership introduced AI tools into internal workflows.

Officials say AI systems are intended to assist employees with process
efficiency, digital return handling, and internal coordination, assurances
which arrive after major workforce reductions, inviting scrutiny about capacity
and long-term sustainability.

The restructuring and rapid introduction of AI have drawn political attention
from those concerned about oversight and execution risk.Lawmakers have
questioned certain modernization efforts and external collaborations,
reflecting broader debates about oversight and operational transparency.

Whether automation can offset the loss of institutional knowledge remains
uncertain as filing deadlines and legislative implementation timelines
approach.

Via The Register - https://www.theregister.com/2026/02/19/irs_job_cuts/


https://www.techradar.com/pro/security/talk-about-an-unwelcome-tax-cut-doge-inv
estigations-saw-irs-lose-40-of-workforce-in-2025

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