Skip to main content

HHS Cuts 10,000 Employees

March 27, 2025
Image: [image credit]
Photo 230368273 © Monticelllo | Dreamstime.com

The U.S. Department of Health and Human Services (HHS) announced Thursday it will eliminate 10,000 full-time positions across its agencies, marking a sweeping restructuring effort aimed at realigning the department with new public health priorities. The reduction comes in addition to another 10,000 employees who have left voluntarily in recent months, resulting in an overall downsizing of about 25% of the HHS workforce.

The move, first reported by The Wall Street Journal, has left state and local health departments scrambling. Many agencies say they were caught off guard by the abrupt end to federal pandemic-era grant programs, describing the sudden shift as disruptive and destabilizing.

According to HHS, the restructuring will consolidate the agency from 28 divisions to 15, and reduce the number of regional offices from 10 to 5. The department estimates the changes will save taxpayers approximately $1.8 billion annually.

“We aren’t just reducing bureaucratic sprawl. We are realigning the organization with its core mission and our new priorities in reversing the chronic disease epidemic,” said HHS Secretary Robert F. Kennedy Jr. in a statement. “This Department will do more – a lot more – at a lower cost to the taxpayer.”

Key Cuts by Agency:

  • FDA: 3,500 full-time roles will be cut, though positions related to drug, device, and food safety review will not be affected.

  • CDC: 2,400 positions eliminated.

  • NIH: 1,200 jobs cut, largely by centralizing procurement, HR, and communications.

  • CMS: 300 positions to be reduced.

Major Organizational Changes:

A newly formed Administration for a Healthy America will consolidate several agencies, including:

  • The Office of the Assistant Secretary for Health

  • Health Resources and Services Administration (HRSA)

  • Substance Abuse and Mental Health Services Administration (SAMHSA)

  • Agency for Toxic Substances and Disease Registry (ATSDR)

  • National Institute for Occupational Safety and Health (NIOSH)

The new agency will focus on areas such as primary care, maternal and child health, mental health, environmental health, HIV/AIDS, and workforce development.

Other changes include:

  • Creation of an Assistant Secretary for Enforcement, overseeing civil rights and appeals functions

  • A new Office of Strategy, merging health policy and research agencies

  • The Administration for Strategic Preparedness and Response (ASPR) will move under the CDC

  • The Administration for Community Living, which serves older adults and people with disabilities, will be integrated into other HHS entities

Timeline and Impact:

The cuts are expected to take effect on May 27, according to a formal Reduction in Force (RIF) notice sent to the American Federation of Government Employees (AFGE) on Thursday. Between 8,000 and 10,000 employees are expected to be impacted, with direct notifications to staff potentially beginning as early as Friday.

The reduction primarily targets administrative roles such as HR, IT, procurement, and finance—particularly in high-cost regions and areas deemed redundant across the department.

The AFGE union has been invited to begin impact and implementation negotiations.