DoD RIF 2025: What Civilian Employees Should Know About the Ongoing Restructuring

The Department of Defense (DoD) is entering a critical phase of workforce transformation in 2025. As part of a broader federal effort to reduce government size, cut costs, and reallocate resources toward strategic missions, the DoD is implementing a range of personnel reduction tools — including Reductions in Force (RIFs), voluntary exits, and performance-based separations. These changes are reshaping the civilian workforce and prompting uncertainty among tens of thousands of federal employees.

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Key Components of DoD Restructuring in 2025

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1. Executive Order 14210

The directive calls for a leaner and more agile civilian workforce across the Department of Defense, setting the foundation for widespread restructuring initiatives.

2. Workforce Reshaping Tool

The DoD is actively analysing workforce data—such as performance metrics, length of service, and job redundancy—to inform strategic staffing decisions.

3. Civilian Hiring Freeze

A full hiring freeze has been put in place across all DoD components, limiting new onboarding while existing roles are evaluated.

4. Probationary Employee Terminations

Approximately 5,400 probationary employees have been separated from service, highlighting a focus on performance-based decisions during the restructuring.

5. Deferred Resignation Program (DRP)

Reactivated in 2025, the DRP allows eligible employees to voluntarily resign while continuing to receive pay for a designated period.

6. Voluntary Early Retirement (VERA)

The DoD is offering early retirement packages to qualified civilian employees as part of efforts to reduce the workforce through voluntary measures i.e VERA.

7. Reduction in Force (RIF) Outlook

Although RIFs are not the first option, they remain a possibility if voluntary programs and natural attrition do not meet downsizing targets.

8. OPM Guidelines and Phase 2 Planning

The Office of Personnel Management has instructed agencies to develop future-state organizational plans—complete with updated charts—by September 30, 2025, as part of Phase 2 planning.

9. Legal Interventions and Delays

A federal court order has temporarily halted certain RIF actions, pausing key discussions between federal agencies and the White House until further review.

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You may also like: deferred resignation program

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What Is a RIF?

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A Reduction in Force (RIF) is an official process used by federal agencies to eliminate positions due to reorganization, lack of funding, or changes in workload. For DoD employees, a RIF can mean reassignment, downgrade, or even separation from federal service — depending on tenure, performance ratings, and veteran status.

While "layoffs" is a term often used in the media, a RIF follows strict rules outlined by the Office of Personnel Management (OPM), prioritising employees by service history and qualifications.

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Why Is a DoD RIF Happening in 2025?

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The 2025 federal budget includes aggressive measures to reduce civilian government spending. Within the DoD, this translates to reshaping a workforce that had expanded during previous years due to new missions and operational demands.

Key drivers of the RIF include:

• Executive Order 14210 calling for a “leaner and more agile federal government.”
• A targeted 10% reduction in civilian staff across the Air Force and Space Force.
• A broader goal of reducing up to 61,000 civilian jobs across the Department of Defense.
• This isn’t just about numbers — it’s a strategic shift, aimed at reallocating personnel and funding from administrative roles to mission-critical and tech-driven positions.

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Temporary Pause – Then Resume

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While the RIF plans were originally moving quickly, in April 2025, a federal judge issued a temporary 14-day restraining order to halt all major RIF-related actions across federal agencies, including the DoD. The court cited concerns about rushed implementation and a lack of sufficient legal justification.

However, shortly after, the Trump administration resumed firings of probationary employees, which are not classified as RIFs and therefore aren’t subject to the same legal constraints. These firings apply to employees still within their probationary period, typically the first year of federal service or the first year in a new position after promotion.

This dual-track approach — voluntary exits plus legal firings — shows how the administration is pushing forward even in the face of legal resistance.

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Voluntary Exits as a Preferred Tool

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Rather than rely solely on involuntary job cuts, the DoD is also offering voluntary early retirement (VERA) and voluntary separation incentives (VSIP) to encourage employees to leave on their own terms. According to the Pentagon, more than 21,000 civilian employees have accepted offers for deferred resignation or early retirement so far in 2025.

These programs offer a win-win for the agency and employees: the DoD reduces headcount, and employees receive financial support or early pension access.

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Who’s Most at Risk?

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DoD RIFs are being conducted strategically, not randomly. Those most at risk include:

• Employees in roles considered non-essential to national security missions.
• Individuals with shorter federal service time.
• Those with lower performance ratings
• Non-veterans, since veterans often receive RIF retention preference.
• Some divisions — such as logistics, administrative support, and facilities management — are more affected than cyber operations, intelligence, or AI-focused units.

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What Should Employees Do?

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If you're a civilian employee in the Department of Defense, here are immediate steps you can take:

• Review Your Personnel Record: Ensure your tenure, veterans’ preference, and performance ratings are accurate.
• Attend HR Briefings: Many DoD components are holding sessions on RIF procedures and rights.
• Explore VERA/VSIP Options: You may qualify for early retirement or a lump sum incentive.
• Consider Transfer Opportunities: Some agencies are coordinating interagency transfers to retain talent.
• Meet with a Federal Benefits Specialist: Understanding your pension eligibility, TSP options, and buyback potential is crucial right now.

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Final Thoughts

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DoD RIF 2025 isn’t just a cost-cutting exercise — it’s a government-wide transformation of how civilian roles align with national defense priorities. While the immediate outlook may feel uncertain, many employees are finding pathways to voluntary retirement, early exits, or lateral moves within the federal system.

Stay informed, explore your options, and prepare for what’s ahead — because in a restructuring this large, planning is everything.