New Administration, New Workforce Changes
Federal agencies across all areas of government have been contemplating workforce challenges for several years now. Prior to 2025, concerns for federal employees chiefly included maintaining an appropriate number of personnel with many aging out and retiring from the workforce, in addition to obtaining and retaining new talent that fit the ever-increasing technological needs of advanced and emerging IT given the competitive salary requirements for some of the field’s best and brightest. Fast forward to 2025, and we’re seeing even more variables enter the federal workforce arena. President Trump has prioritized downsizing the number of federal employees in conjunction with its proposed Department of Government Efficiency (DOGE), arguing the need to reduce overall spending.
On January 31, 2025, the administration directed the Office of Personnel Management (OPM) to cut its internal staff by 70%. It is important to note this decrease is an effort directed at OPM employees, and not directly to the overall federal workforce numbers. We do anticipate further reductions across agencies, but the specific percentages and agencies affected are currently unknown.
That said, OPM has been told to take immediate action, offering briefings to the Trump administration with details to reduce their workforce by 30% as an initial move. We can expect to see additional details and plans released in the coming days and weeks to that end.
On a broader scale, this effort is joined by additional sweeping orders to attempt to remove both the US Agency for International Development and the Department of Education. It is worth noting the approval of Congress is necessary to abolish any federal agency.
The new administration has released a record number of orders in effort to reduce what they term “waste”, including any spending or personnel counts deemed to be inefficient. For vendors and partners, this signals the importance of maintaining operations with your end users as instructed, recording all contractual and transactional information, and most importantly, understanding the potential need to diversify your capabilities and teaming arrangements. The ability to pivot and offer your solutions to end users across a number of agencies, utilizing various contracts and contract vehicles, will be a necessity as we continue to watch further developments unfold.
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About the Author:
Susanna Patten is a senior manager on the TD SYNNEX Public Sector Market Insights team covering tech trends across the Public Sector. Susanna has over 15 years of experience in public sector IT procurement. Her responsibilities at TD SYNNEX Public Sector include driving market intelligence asset production, ensuring the quality and relevance of deliverables from the Market Insights team, and aligning these insights with sales opportunities.