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Department of Defence Layoffs, Federal Job Cuts, and “Trump Layoffs” What DoD Civilians Need to Know Now

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Written & Reviewed by Jeremy

Published

Oct 29, 2025

Last Updated

Oct 30, 2025

Department of Defence Layoffs, Federal Job Cuts, and “Trump Layoffs” What DoD Civilians Need to Know Now

If you’re a federal employee especially within the Department of Defense you’ve probably felt the tension rising. The news of federal job cuts and DoD layoffs under the Trump administration has stirred up uncertainty across installations and command offices nationwide.

We’ve guided hundreds of DoD civilians through past workforce cuts and hiring freezes. And one truth always holds: those who prepare early fare better financially, emotionally, and professionally.

So let’s walk through what’s happening, what the latest court rulings mean, and the practical steps you can take right now to protect your job, your benefits, and your retirement.

The Current Landscape: What’s Actually Happening and Why

Earlier this month, U.S. District Court Judge Susan Illston in San Francisco issued a preliminary injunction temporarily blocking the Trump administration from issuing or enforcing new Reduction-in-Force (RIF) notices tied to the government shutdown.

The order affects roughly 4,000 federal employees for now, pausing layoffs that Judge Illston described as motivated by “political retribution.” She cited public remarks in which the President said his administration was targeting “Democrat agencies” for cuts.

However and this is key the injunction does not stop RIFs that were already underway before the shutdown. That means agencies like DoD that had existing reorganization or budget-driven RIF plans may still proceed.

The administration has hinted at plans to eventually issue RIF notices to as many as 10,000 employees government-wide, with some Interior Department offices already preparing to act once the injunction lifts.

In our work supporting federal employees through previous shutdowns and RIF cycles, we’ve seen these situations shift rapidly. Legal protections buy time but not certainty. So let’s focus on what’s within your control.

Understanding the Tools: RIF vs. Furlough vs. Buyout

A lot of DoD civilians confuse these terms. They sound similar, but the implications for your job and benefits are very different.

  • RIF (Reduction-in-Force): A permanent layoff or downgrade due to lack of work, funding, or reorganization. You may be separated or reassigned.

  • Furlough: A temporary, unpaid leave, typically during a shutdown. You remain an employee and usually receive retroactive pay when Congress funds the government again.

  • Buyout/VERA (Voluntary Early Retirement Authority): A VERA exit incentive to help agencies reduce staff without forcing layoffs. Commonly offered before a RIF to minimize involuntary separations.

In our experience advising DoD civilians, those who act early when buyouts are offered and fully understand the impact on their FERS annuity, TSP, and FEHB coverage often save themselves a lot of financial stress.

Who’s Most at Risk Right Now?

Every agency and command handles workforce planning differently, but certain patterns are emerging.

Higher-Risk Groups:

  • Probationary or term employees (less job protection)

  • Positions funded through lapsed or discretionary accounts

  • Administrative or “non-core” support functions targeted for consolidation

Lower-Risk Groups:

  • Mission-critical billets in cybersecurity, maintenance, or logistics

  • Employees funded through working capital funds (since these are self-sustaining)

  • Career status employees with strong tenure and veterans’ preference

When we conduct risk reviews for DoD clients, we always start with funding source and position series. These two details tell you more about your exposure than any rumor in the hallway.

Your Two-Week Action Plan to Protect Yourself

Week 1 – Get Your Documentation in Order

  • Review your eOPF (Electronic Official Personnel Folder) for accuracy especially your Service Computation Date (SCD-RIF), veterans’ preference, and performance ratings.

  • Gather your last three SF-50s and recent appraisals. These determine your retention standing.

  • Update your USAJOBS and internal DoD career profiles. If a RIF occurs, the Priority Placement Program (PPP) will use this information.

Week 2 – Plan for Flexibility and Communication

  • Meet with your HR specialist or union rep to clarify whether your installation is under a RIF review.

  • Explore reassignment or detail opportunities within your command being proactive often preserves continuous service.

  • If a RIF notice arrives, mark your deadlines. You generally have 30 days to appeal to the Merit Systems Protection Board (MSPB) if you believe procedures weren’t followed.

In one recent RIF cycle we advised on, an employee who spotted an incorrect SCD in her record moved from “second in line” for separation to “safe.” Details matter.

Your Pay, Benefits, and Retirement Don’t Leave Them to Chance

When layoffs hit, benefits questions multiply fast. Here’s what we tell every client in this situation:

  • FEHB (Health Insurance): You may continue coverage for up to 18 months under Temporary Continuation of Coverage (TCC). Compare this to joining a spouse’s plan TCC premiums are higher.

  • FEGLI (Life Insurance): You have 31 days post-separation to convert to an individual policy.

  • TSP: You can leave funds in your TSP account, roll them into another retirement plan, or withdraw though we rarely recommend cashing out early due to taxes and penalties.

  • FERS: If you’re near your Minimum Retirement Age (MRA), review your MRA+10 or deferred retirement options. In our experience, many mid-career feds can still preserve their pension value if they time things correctly.

We’ve walked employees through these decisions countless times. The earlier you plan, the more options you keep open.

What to Expect if a RIF Notice Arrives

If you receive a RIF notice, don’t panic act methodically.

  1. Read the notice carefully. It should explain why your position was abolished and outline your assignment rights.

  2. Request your retention register to verify your tenure, veterans’ preference, and SCD.

  3. Register for PPP (DoD’s Priority Placement Program) this is your best shot at fast reemployment.

  4. Consult your union or HR office to clarify your appeal rights. If procedures weren’t followed, an MSPB appeal could reinstate your position or benefits.

We’ve helped employees overturn RIF decisions when procedural errors occurred something most people miss without guidance.

Key Takeaways and What’s Next

  • The injunction offers temporary relief, not immunity. Shutdown-based RIFs are paused, but others are still advancing.

  • Funding drives everything. Pay attention to how your position is funded not just your title or grade.

  • Accuracy equals protection. Your personnel record is your shield in a RIF.

  • Preparation beats panic. Waiting for “official word” often means missing critical appeal or reassignment windows.

The coming months will likely bring new OPM and OMB guidance, additional court rulings, and possibly more RIF announcements. The trend toward federal job cuts isn’t over but knowledge and preparation will keep you ahead of it.

Final Thoughts and How We Can Help

Having advised federal employees through multiple administrations and economic cycles, we know how unsettling these moments can be. But we’ve also seen firsthand that strategy and timing can make all the difference.

Whether you’re a DoD civilian nearing retirement or mid-career and weighing options, now is the time to act not to react. Understanding your rights, verifying your records, and planning your benefits strategy will help you navigate whatever comes next.

Schedule a complimentary consultation today. We’ll review your current position, benefits, and service history and help you build a clear plan to protect your career and secure your federal retirement future.

Key Takeaways

  • The preliminary injunction pauses only shutdown-based RIFs not all layoffs.

  • The administration still plans broade.r federal job cuts, possibly affecting up to 10,000 employees.
  • federal job cuts, possibly affecting up to 10,000 employees.

  • DoD civilians should review records, funding sources, and appeal rights now.

  • Your benefits and pension can be preserved with early, informed planning.

  • Action today prevents crisis tomorrow.


FAQs We’re Hearing Right Now

  • Does the injunction mean I’m safe?
    It pauses shutdown-based RIFs, not pre-shutdown notices or other reductions. Check the date and basis of any notice you receive.

  • I’m probationary do I have rights?
    Fewer, but not zero. You still have rights if procedures weren’t followed or prohibited personnel practices are alleged. Get representation early.

  • Can I transfer to avoid a RIF?
    Often yes if you act before retention registers lock in. Reassignment and PPP registration are your best early moves.

Content Sources

  1. Federal News Network

  2. The Washington Post

  3. Reuters

  4. The Guardian

  5. Associated Press (AP)

  6. Office of Personnel Management (OPM)

  7. Office of Management and Budget (OMB)

  8. U.S. District Court for the Northern District of California

Disclaimer:
The information provided in this article is for educational and informational purposes only. It is not intended as legal, financial, or human resources advice. Readers should consult their agency HR office, union representative, or qualified federal benefits advisor before making any employment or retirement decisions.

The views expressed are those of the author and do not represent the policies of any U.S. government agency or department. While every effort has been made to ensure accuracy, federal regulations and case rulings are subject to change.

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Jeremy Haug

Jeremy is a seasoned contributor for Federal Pension Advisors bringing years of experience in helping federal employees understand their pension and benefits. His goal is to make retirement planning clear, practical, and empowering.

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