The Office of Personnel Management has cut its workforce by 35% since December 2024, according to a Government Accountability Office report released this week, shedding more than 1,000 federal employees and eliminating 10 offices as the Trump administration continues its push to shrink government.
Between December 2024 and March 2026, OPM’s headcount fell from approximately 3,000 to roughly 2,000 employees, according to the GAO analysis. The cuts represent one of the most significant workforce reductions at a single agency overseeing federal human resources and personnel policy.
The departures hit experienced staff particularly hard. More than half—57%—of employees who left OPM during this period had 11 or more years of service, representing what the GAO called a significant loss of institutional knowledge. Employees aged 60 and older saw their numbers decline by 49%, while among younger workers under age 30 who separated, 60% were still within their probationary period.
Nearly 60% of OPM’s departing employees left through the deferred resignation program, a voluntary separation incentive offering financial benefits. An additional 10% left through reduction in force actions, according to analysis of federal workforce data.
The reductions extended to specific divisions. OPM’s Retirement Services office, which administers the federal civilian retirement system, experienced a 16% staffing decrease from fiscal 2024 to 2026 despite managing what the agency described as a historic surge of retirements in 2025. The Merit System Accountability & Compliance division, which handles appeals and compliance matters, saw a 41% cut in full-time equivalents.
Operational Challenges Emerge
The staffing reductions have created immediate operational challenges. Federal retirees report significant delays in receiving retirement benefits, with some who opted into the deferred resignation program last year still waiting nearly a year for their retirement paperwork to be processed.
A former IRS employee who took the deferred resignation offer said she had been forced to drain her savings and withdraw from her 401(k) to pay bills while waiting for retirement checks to arrive. A former National Cancer Institute employee reported that his retirement application, though adjudicated, remained in review status months after his separation.
The GAO identified OPM’s workforce reduction as a top management challenge for 2026, noting in its report that staff reductions have created immediate gaps in operational capacity at the agency. The watchdog agency found that OPM did not fully cooperate with its investigation, declining to provide requested documents or meet with GAO officials to explain the rationale behind office closures and consolidations.
Despite the cuts, OPM is pursuing further workforce reductions. Last month, the agency announced another round of voluntary separation incentives for employees in its healthcare and insurance division, with a July 13 deadline for most employees and an August 27 deadline for workers age 40 and older. An OPM spokesperson said the agency remains “very confident in our staffing levels and OPM’s ability to deliver on a successful open season,” referring to the annual period in November and December when federal employees can change health insurance plans.
OPM has proposed using artificial intelligence tools and modernizing IT systems to carry out work with fewer staff. The agency has also proposed taking over the appeals process for terminated federal employees from the Merit Systems Protection Board—work that would fall to a division that has already experienced a 40% staffing cut.
Sources
- Government Accountability Office (GAO) — Published July 20, 2026 report on OPM workforce changes showing 35% headcount reduction, 10 offices eliminated, 57% of departing employees had 11+ years service, 16% Retirement Services cut, 41% Merit System Accountability & Compliance cut
- Government Executive — July 20, 2026 article on OPM workforce cuts, deferred resignation program details, retirement processing delays, and further DRP offers for healthcare and insurance employees
- Federal News Network — Coverage of OPM offering incentives for healthcare and insurance employees to leave before Open Season
