OPM cuts workforce by 35%, offers new round of deferred resignations

The federal government's human resources office has shed more than a third of its total workforce under the second Trump administration and is seeking further staffing reductions through another round of voluntary separation incentives.

Key Findings from GAO Report

The Office of Personnel Management (OPM) reduced its total headcount by 35% between December 2024 and March 2026, according to a report from the Government Accountability Office (GAO).

In its analysis of federal workforce data, GAO found that more than half of OPM employees who left during this period had 11 or more years of service.

"These actions have reduced institutional knowledge and operational capacity at the agency," GAO wrote, adding that these staffing cuts may worsen skills gaps it previously flagged at OPM.

Breakdown of Departures

Nearly 60% of OPM employees who left under the second Trump administration did so through the deferred resignation program. Layoffs through a reduction in force account for 10% of OPM's staffing cuts.

Latest Deferred Resignation Program Offer

OPM is pursuing further workforce cuts. Last month, the agency announced it would give employees in its healthcare and insurance division another opportunity to opt into the deferred resignation program (DRP).

• OPM set a July 13 deadline for eligible employees to opt in to the latest DRP offer.
• Employees aged 40 or older have until August 27 to consider the agreement.
• Employees accepted into this round of the DRP will go on paid administrative leave starting at the end of August and will officially separate from the agency in March 2027.

An OPM employee who opted into the latest DRP offer said it is not yet clear how many coworkers have made the same decision.

"We are all curious, but no one is sharing unless they're fully committed to staying," the OPM employee said.

Timing and Open Season Concerns

The latest DRP offer comes a few months before OPM's busy Open Season, a one-month period in which federal and Postal Service employees can make changes to their healthcare plans. Open Season runs from November through December, with health plan changes taking effect in January.

An OPM spokesperson did not specify how many employees have opted into the latest DRP offer, but said in a statement: "We feel very confident in our staffing levels and OPM's ability to deliver on a successful open season."

Processing Delays

Amid these workforce cuts, OPM has experienced some processing delays.

OPM has been rolling out a long-awaited online system for federal retirees and marked its "last day" of paper-based processing this month. However, federal employees who accepted the DRP offer last year are still waiting on OPM to finalize their retirement paperwork.

A former IRS employee who took the deferred resignation program last year said she is still waiting for her retirement checks to arrive.

"Those of us in this position have been forced to drain our savings, withdraw money from our 401(k)s and use credit cards to pay bills while waiting for our retirement checks to start," she said.

The retired IRS employee said agency management held several meetings about the deferred resignation offer and what it would mean for employees, but that "waiting almost a year for your retirement checks to process was not part of that discussion." She said she would not have taken the DRP offer if she had known about the processing delays.

A former federal employee who retired from the National Cancer Institute last year said OPM has not yet fully processed his retirement application. An OPM representative recently told him that his application has been adjudicated but is still waiting to be reviewed.

"I can't help but wonder how many retirees are in the same boat," the former NCI employee said.

OPM Response

An OPM spokesperson said the agency "remains committed to ensuring federal retirees receive the benefits they have earned while modernizing a decades-old retirement processing system," and that the transition from a paper-based system will reduce processing times and provide a better experience for retirees.

Additional Context

GAO's report found that OPM's retirement services office saw a 16% staffing decrease between fiscal 2024 and fiscal 2026.

OPM, earlier this year, proposed taking over the work of adjudicating the appeals of certain terminated federal employees.