Philadelphia, PA – Hundreds of Internal Revenue Service (IRS) employees in Philadelphia lost their jobs on Thursday as part of the Trump administration’s efforts to reduce the size of the federal workforce. A union leader confirmed that between 250 and 300 probationary workers received layoff letters during the day shift, with the night shift employees expected to be notified later in the evening. By the end of the day, around 400 IRS workers in the city were expected to be laid off.
According to Alex Jay Berman, executive vice president of the National Treasury Employees Union (NTEU) Chapter 71, all affected employees had been with the IRS for roughly a year or less and were still considered probationary. He criticized the wording of the layoff letters, which stated that the employees’ “ability, skills, and performance” were not up to federal employment standards.
“These letters are factually incorrect and, in our belief, unlawful,” Berman stated. “Every single probationary employee received the exact same wording, regardless of their actual performance. Some of these employees had just finished training, while others had been working for nearly a year with strong performance appraisals.”
Nationwide Layoffs Affect 7,000 IRS Workers
The Associated Press confirmed that approximately 7,000 probationary IRS employees, primarily from compliance departments, were being laid off nationwide. These employees play a key role in ensuring taxpayers adhere to tax regulations, file returns accurately, and pay their dues on time.
The layoffs are part of a broader federal workforce reduction effort under the Department of Government Efficiency. The effort aims to cut costs by eliminating nearly all probationary positions that have not yet gained civil service protection. However, the timing of the layoffs is controversial, as it coincides with the peak of the 2025 tax season.
Earlier this month, IRS employees were informed that they would not be eligible to accept buyout offers from the administration until mid-May, after the tax filing deadline.
Personal Impact: Employees Speak Out
One of the laid-off employees, Robert McCabe, shared his experience with NBC10. He arrived at work as usual on Thursday morning but was unable to log into his system. Along with his colleagues, he waited for further instructions before receiving his layoff letter shortly before 11:30 a.m.
McCabe, who had previously supported President Trump’s efforts to reduce government waste, expressed his disappointment.
“I believed in fixing government inefficiencies, but I thought it would be done with precision rather than a wrecking ball,” McCabe said. “This move is just destroying people’s lives unnecessarily.”
Potential Impact on IRS Services
The layoffs raise concerns about how tax collection services will be affected, particularly as the IRS had been making strides in targeting tax evaders under the Biden administration. By the end of 2024, the agency had successfully collected over $1.3 billion in back taxes from high-income individuals attempting to dodge tax responsibilities.
The IRS currently employs approximately 90,000 workers across the United States. According to agency data, 56% of its workforce consists of racial minorities, while 65% of employees are women.
IRS Workers to be Reassigned to Immigration Enforcement
In addition to job cuts, the Trump administration plans to reassign some IRS employees to assist the Department of Homeland Security (DHS) with immigration enforcement efforts. Earlier this month, DHS Secretary Kristi Noem sent a letter to Treasury Secretary Scott Bessent requesting the transfer of IRS workers to support immigration crackdowns.
Neither the IRS nor the U.S. Treasury has responded to media inquiries regarding the layoffs and reassignment plans.
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