
How Many Federal Workers Were Cut in 2026?
The latest full-year data shows that more than 300,000 federal employees left government service during 2025. After new hires are counted, that produced a net federal workforce reduction of roughly 238,000 positions, according to the Office of Personnel Management (OPM) and an analysis by the Pew Research Center.
Many of these 2025 separations were deferred resignations that did not become final until late in the year. They shaped the federal workforce picture heading into 2026, so you should not read them as cuts that happened entirely within 2026.
"Cut" is not a single category, either. The total blends layoffs, resignations, retirements, deferred resignations, and reductions in force. That's why published figures range from about 238,000 to more than 320,000, depending on what is being counted.
This guide explains where those numbers come from and what each separation type means. Most important for current employees, it explains how a workforce cut affects your federal retirement, pension, and health benefits.
Full 2026 federal workforce data is not yet complete. The most reliable current figures come from 2025 OPM, Pew Research Center, and U.S. Government Accountability Office (GAO) data, which show more than 300,000 total separations and a net workforce reduction of about 238,000. These 2025 separations shaped the federal workforce as it stands in 2026.
If you've been swept up in a reduction, the headline number matters far less than what happens to your own FERS annuity, Thrift Savings Plan, and health coverage. We cover both.
Where the 2026 Federal Workforce Cut Numbers Come From
The clearest current estimate is that around 317,000 federal employees left government during 2025. OPM Director Scott Kupor announced that figure publicly, and outlets including Government Executive and FedManager reported it. The net workforce reduction was roughly 238,000 positions once you subtract new hires, according to the Pew Research Center.
OPM-reported figures showed more than 300,000 total separations between January 20, 2025 and late 2025. Complete 2026 data is not yet available, so these 2025 figures are the most reliable current numbers.
Many of these departures shaped the federal workforce count heading into 2026. That's largely because deferred-resignation employees stayed on paid administrative leave until their agreed 2025 separation dates, generally September 30, 2025, or up to December 31, 2025 for those eligible to retire, per OPM.
This does not mean every departing employee was laid off. The totals include voluntary resignations, standard retirements, deferred resignations, probationary terminations, and formal reductions in force.
The Pew Research Center calculated that the workforce shrank by about 10.3% across 2025. That's one of the steepest single-year declines on record.
Why the Number Is Hard to Count
A federal workforce cut is not always a layoff. The headline number includes several distinct types of separation, which is why different sources report different totals for the 2025 to 2026 period.
The figure you see depends on four choices: whether you count total departures or net reduction, whether you include voluntary exits, which date range you use, and whether you include employees on administrative leave who have not yet formally separated.
Several factors widen the gap between estimates:
- Total departures vs. net reduction. Total separations of around 317,000 do not subtract the roughly 68,000 people OPM says it hired during the same period. The net loss is the smaller figure, about 238,000 per Pew.
- Voluntary vs. involuntary. Most departures were voluntary. According to OPM, as reported by Government Executive, about 92% of 2025 departures came through the Deferred Resignation Program, buyouts, or ordinary resignation. Only around 24,000 employees were fired or laid off.
- Reporting lag. OPM updates its public FedScope dataset only a few times a year, so many high-profile reductions did not appear until the December 2025 figures came out.
- Reclassified terminations. The Partnership for Public Service noted that OPM moved disciplinary and performance-based terminations into an "other separations" category, which makes firings harder to isolate.
Federal Workers Cut vs. Quit vs. Laid Off
The single biggest source of confusion is terminology. "Cut" is an umbrella word, and the categories underneath it carry very different consequences for your benefits. The table below defines each term as OPM and federal personnel rules use it.
A reduction in force (RIF) is the formal process agencies use to eliminate positions for reasons such as reorganization, lack of work, or budget limits. Deferred resignation is different: the employee chooses to leave by a set date, usually while drawing pay on administrative leave first.
What the GAO Report Shows
The U.S. Government Accountability Office (GAO), the investigative arm of Congress, provided one of the most rigorous early snapshots of the contraction. According to the GAO, agencies reported more than 134,000 separations and nearly 66,000 hires in the first half of 2025, and roughly 144,000 employees were approved for the deferred resignation program over that period.
Those first-half actions set up the larger reduction that carried into 2026. Many deferred-resignation employees stayed on the payroll, on paid leave, until their separation dates late in 2025. That's why the workforce looked dramatically smaller heading into the new year than mid-2025 headcounts alone suggested.
The GAO also found that staffing fell at nearly every major agency. The drop ranged from under 5% at the Department of Defense to over 20% at the Department of Education.
How Many Federal Workers Took Deferred Resignation?
Deferred resignation was the largest single driver of the 2025 to 2026 workforce reduction. OPM's Workforce Changes dashboard shows 139,628 federal employees took the Deferred Resignation Program, the voluntary "Fork in the Road" offer that let workers stop working while continuing to receive pay and benefits through a set separation date.
A widely reported estimate from Reuters put the figure somewhat higher, at about 154,000 federal workers accepting buyout offers in 2025. You can read more about how this option worked in our guide to the deferred resignation program.
Deferred resignation is a major reason the federal workforce cut number looks larger than traditional layoff figures. These employees were generally not fired. They accepted an offer, but their departures still reduced the size of government.
Formal RIFs appear to represent a small share of the total. According to OPM figures reported by Government Executive, only around 24,000 of the 2025 departures were involuntary firings or layoffs, with formal RIFs a fraction of that.
Were These Federal Workers Fired or Did They Resign?
Most were not fired. The large majority of federal workers who left in 2025 and 2026 departed through deferred resignation, voluntary retirement, ordinary resignation, probationary termination, or agency restructuring. Formal reductions in force accounted for a small minority of separations.
This is why "how many workers were cut" and "how many workers were laid off" are genuinely different questions with different answers.
The distinction matters for your benefits. An involuntary separation through a RIF can unlock options that a voluntary resignation does not: severance pay, discontinued service retirement, and, in limited circumstances, a waiver of the FEHB five-year rule.
These options depend on your retirement eligibility and the specific separation circumstances. Knowing exactly which category applies to you is the first step in protecting what you've earned.
Which Federal Employees Are Most Affected by Workforce Cuts?
Workforce reductions did not fall evenly. Some groups face far higher exposure to separation and far greater benefit risk than others. These employees should pay especially close attention:
- Probationary employees, who have the fewest job protections and were targeted early in 2025.
- Employees near retirement eligibility, for whom the timing of separation can change pension and health-coverage outcomes significantly.
- Employees in agencies facing reorganization, particularly those that saw the steepest reductions; the Pew Research Center identified the Department of Education and USAID among the hardest hit.
- Employees offered deferred resignation, who must weigh paid leave now against long-term benefit eligibility.
- Employees who received RIF notices, who may qualify for severance and special retirement provisions.
- Workers with limited service time, who may not yet meet the thresholds for an immediate annuity or continued FEHB.
- Employees who need FEHB into retirement, for whom the five-year coverage rule is decisive.
What Federal Employees Should Check After a Workforce Cut
If you've been separated or offered an exit, the most urgent task is to confirm exactly what you keep and what you forfeit. Work through this checklist before signing anything or requesting a refund of your contributions:
- FERS retirement eligibility. Confirm your age and years of service against the rules below, or review the details on our FERS retirement planning page.
- MRA + 10 eligibility. Your Minimum Retirement Age (MRA), currently 57 for those born in 1970 or later, with at least 10 years of service allows a reduced immediate annuity.
- Immediate vs. deferred retirement. An immediate annuity preserves FEHB; a deferred annuity generally does not.
- The FEHB five-year rule. You must have been enrolled in FEHB for the five years immediately before retirement, and retire on an immediate annuity, to carry coverage into retirement.
- TSP withdrawal options. Your Thrift Savings Plan account remains yours; avoid rushed withdrawals that trigger taxes or penalties. See our TSP withdrawal guide for the rules.
- Severance pay. Generally available for involuntary separations such as RIFs, not for voluntary resignations.
- Unused annual leave payout. Paid as a lump sum on separation.
- Social Security timing. Coordinate with the FERS annuity and, where applicable, the FERS supplement.
- Survivor benefit decisions. Made at retirement and difficult to change later.
- Whether a RIF changes your retirement options. It may open discontinued service retirement and, in some cases, special FEHB continuation or waiver options.
Before making a resignation, retirement, or TSP withdrawal decision, review how the separation affects your FERS, FEHB, TSP, and survivor benefits.
How Federal Workforce Cuts Can Affect Retirement Benefits
A workforce cut does not automatically erase the benefits you've already earned, but it can change when and how you can claim them. Under FERS, the Federal Employees Retirement System, your earned annuity is generally protected even after separation. What changes is your eligibility to start collecting it.
Key points:
- A cut does not eliminate your earned FERS pension; vesting generally occurs at five years of service.
- FEHB continuation depends on meeting the five-year rule and retiring on an immediate annuity. Leaving before retirement eligibility typically ends FEHB coverage, though temporary continuation coverage may be available for up to 18 months at full cost.
- Your TSP remains your account regardless of how you leave; you control the timing of withdrawals subject to standard rules.
- Retirement timing affects your pension calculation through your High-3, the average of your highest three consecutive years of base pay, and your total years of service.
- Leaving before eligibility can convert what would have been an immediate annuity with health coverage into a deferred annuity without it.
You can read more about carrying coverage forward in our guide to FEHB in retirement.
When to Speak With a Federal Retirement Advisor
If a federal workforce cut, a RIF, a deferred resignation offer, or an early retirement offer affects you, the most important question is not only how many workers were cut. It's whether your own benefits are protected before you leave.
The difference between separating one month before and one month after an eligibility milestone can be worth tens of thousands of dollars in lifetime pension value and continued health coverage.
Federal Pension Advisors, a retirement planning firm specializing in federal employee benefits, helps current and departing federal employees model these decisions before they become irreversible. Book a consultation with a federal retirement specialist to review your FERS, TSP, FEHB, and retirement income options before making a final decision.
Conclusion
The honest answer to "how many federal workers were cut in 2026" is that it depends on definitions: roughly 317,000 total departures during 2025 per OPM, a net reduction near 238,000 per the Pew Research Center, and only a small fraction, around 24,000, through involuntary firings and layoffs.
The bigger story for anyone still in government is that the overwhelming majority of these exits were voluntary. The type of separation, not the headline number, determines what happens to your pension, health coverage, and savings.
If a cut, RIF, or resignation offer is on your table, confirm your FERS, FEHB, and TSP position before you act. Federal Pension Advisors, a retirement planning firm specializing in federal employee benefits, can help you run those numbers first through federal retirement planning built around your situation.
Frequently Asked Questions
1. How many federal workers were cut in 2026?
About 317,000 federal employees left the government during 2025, with a net workforce reduction near 238,000 after new hires, according to OPM and Pew Research Center data. Those departures carried into 2026. The total includes resignations, retirements, and deferred resignations, not only layoffs.
2. Did federal workers quit or get laid off?
Both happened, but most left voluntarily. According to OPM, as reported by Government Executive, about 92% of 2025 departures came through the Deferred Resignation Program, buyouts, or resignation. Only around 24,000 separations were involuntary firings or layoffs, a small share of the total.
3. What is a federal RIF?
A reduction in force, or RIF, is the formal process federal agencies use to eliminate positions because of reorganization, lack of work, budget limits, or other workforce needs. RIF rules set the order of separation and can trigger severance pay and special retirement eligibility for affected employees.
4. How many federal workers took deferred resignation?
OPM's Workforce Changes dashboard shows 139,628 federal employees took the Deferred Resignation Program. A widely reported Reuters estimate put the count higher, at about 154,000 accepting buyout offers in 2025. The program lets employees stop working while keeping pay and benefits through a set separation date.
5. Do federal workers lose their pension if they are cut?
No. Federal employees generally keep their earned FERS benefits after a workforce cut, provided they're vested at five years of service. When and how you can claim the pension depends on your age, total years of service, and the type of separation.
6. Can federal employees keep FEHB after a workforce cut?
It depends on retirement eligibility. To carry FEHB, the Federal Employees Health Benefits Program, into retirement, you must have been enrolled for the five years immediately before retiring and leave on an immediate annuity. In some involuntary RIF situations, employees may qualify for special continuation or waiver rules, depending on the separation details.
Disclaimer
This article is for educational purposes only and should not be treated as financial, tax, legal, or benefits advice. Federal retirement, FEHB, TSP, and separation rules can vary by employee, agency, and situation. Speak with a qualified federal retirement advisor or benefits specialist before making decisions based on a RIF, resignation, deferred resignation, or retirement offer.


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Michael A. Fox
Michael A. Fox is a seasoned Financial Advisor and Retirement Income Planning Specialist with more than 25 years of experience helping individuals and families make informed retirement decisions. His focus is on retirement income planning, protection strategies, and helping clients build long-term financial confidence through clear, practical guidance.

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