The U.S. Department of Health and Human Services (HHS) revealed on Thursday that it plans to cut approximately 10,000 full-time employees across various health agencies. This significant reduction follows an earlier exodus of 10,000 employees who left the department voluntarily, effectively shrinking the workforce by nearly a quarter. The news of these cuts was first reported by The Wall Street Journal.
In its announcement, HHS stated that it will undergo a restructuring process, consolidating its divisions from 28 to just 15. As part of this overhaul, HHS will introduce a new entity called the Administration for a Healthy America. Additionally, the number of regional offices will be cut from 10 to 5. These workforce reductions are projected to save taxpayers approximately $1.8 billion per year.
HHS has articulated a renewed focus on addressing America’s epidemic of chronic illness. The agency aims to prioritize initiatives centered around safe and nutritious food, clean water, and the removal of environmental toxins. HHS Secretary Robert F. Kennedy Jr. emphasized this realignment, stating, “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.” He further assured that the department would deliver more effective services while minimizing costs to taxpayers.
Among the most notable changes is the establishment of the new Administration for a Healthy America, which will integrate several existing offices, including the Office of the Assistant Secretary for Health, the Health Resources and Services Administration, and the Substance Abuse and Mental Health Services Administration. This consolidation aims to streamline operations and enhance focus on critical areas such as primary care, maternal and child health, mental health, environmental health, and HIV/AIDS.
Furthermore, HHS will appoint a new assistant secretary for enforcement, responsible for overseeing the Office for Civil Rights, the Office of Medicare Hearings and Appeals, and the Departmental Appeals Board. A new Office of Strategy will merge the Assistant Secretary for Planning and Evaluation with the Agency for Healthcare Research and Quality, aiming to bolster research that informs policy decisions and enhances the effectiveness of federal health programs.
The formal reduction in force (RIF) notice was sent to leaders of the American Federation of Government Employees union early Thursday morning. It is anticipated that between 8,000 to 10,000 employees will be affected by these layoffs, with the anticipated effective date set for May 27. Specific notifications to impacted employees may begin as early as Friday, according to the communication sent by Thomas J. Nagy Jr., deputy assistant secretary for human resources at HHS.
The cuts will primarily target administrative roles within human resources, information technology, procurement, and finance. Additionally, positions in high-cost regions and those identified as redundant or duplicative within HHS or across the federal government will also be affected. The union has been invited to discuss the timing for negotiations regarding the impact and implementation of these changes.
This is a developing story, and updates will be provided as more information becomes available.
