FDIC layoffs to cut 1,250 jobs from many offices
The Federal Deposit Insurance Corporation (FDIC) a top U.S. banking regulator is initiating a significant workforce reduction, targeting a 20% decrease, approximately 1,250 positions.
And these latest FDIC layoffs are part of a broader federal downsizing strategy under the Trump administration, with involvement from the Department of Government Efficiency led by Elon Musk.
The FDIC's approach includes voluntary programs such as early retirement (VERA), separation incentives (VSIP), and deferred resignation (DRP).
However, not all applicants will be approved, especially those in essential roles like bank failure resolution, risk management, and information security.
If voluntary departures are insufficient, involuntary layoffs may begin after May 13.
This move follows earlier reductions, including 500 voluntary resignations and the termination of 170 probationary employees, though the latter is currently under legal review.
FDIC aims to streamline operations while maintaining its core responsibilities, such as insuring deposits and supervising banks.
The National Treasury Employees Union has expressed concerns over these cuts, highlighting potential impacts on the agency's ability to fulfill its duties.
