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Major Cuts Looming at State Department: What You Need to Know

7/10/2025
Brace for impact as the U.S. State Department prepares for significant layoffs affecting thousands of diplomats. This unprecedented reorganization aims to streamline operations but has left many civil servants in uncertainty. What does this mean for the future of American diplomacy?
Major Cuts Looming at State Department: What You Need to Know
U.S. State Department set for major layoffs as part of a sweeping reorganization. Affected diplomats face uncertainty as cuts are confirmed.

U.S. State Department Workforce Cuts Looming

U.S. diplomats in Washington are preparing for significant cuts to the State Department workforce, as dismissal notices are anticipated to arrive in inboxes as soon as Friday. This alarming development comes from three State Department officials familiar with the plans, marking a pivotal moment in the agency's history.

Mass Reorganization and Workforce Reductions

The upcoming layoffs are part of a comprehensive reorganization of the federal agency, which includes the dissolution or merging of over 300 bureaus and offices. This strategic move aims to achieve a 15% reduction in employees across the board. In an email sent to all agency employees on Thursday evening, Deputy Secretary of State Michael Rigas stated, “In April, the Secretary announced the largest reorganization of the Department in decades. The objective from the start was clear: focus resources on policy priorities and eliminate redundant functions, empowering our people while increasing accountability.”

Rigas confirmed that termination notices would be distributed to affected employees shortly, expressing gratitude for their dedication and service to the United States. This restructuring effort has been in the pipeline for several months, with Secretary of State Marco Rubio informing Congress in late May that up to 1,800 U.S.-based workers would be cut from the approximately 19,000 employed by the State Department.

Deferred Resignations and Implications

In addition to the layoffs, more than 1,500 additional employees accepted the Trump administration’s offer of deferred resignations, which allows them to retain their salaries and health care benefits through September. Secretary Rubio emphasized the careful nature of the reorganization, stating, “The reduction of force is a consequence of the reorg. It’s not a consequence of trying to get rid of people.” He further explained that the closure of certain bureaus rendered some positions unnecessary.

A federal judge in California had previously placed a temporary halt on the terminations, but the Supreme Court has recently ruled that the Trump administration's plans to overhaul the agency can proceed. This back-and-forth between the White House and the judicial system has left thousands of civil servants and foreign service officers in uncertainty, unable to make plans for their futures. One civil servant expressed relief at the impending resolution, stating, “Every Friday morning, I wake up with dread. At least now we can move on.”

Concerns About Morale and Experience Loss

When asked about the impact on morale within the State Department, a senior official acknowledged that the delays were unfortunate but beyond their control. “The courts have delayed this reorganization, kept this uncertainty, unfortunately, over the workforce,” the official explained. “That was not our intent. We want to move forward with this expeditiously, but obviously the administration has complied with all the court orders and injunctions.”

Concerns have been raised by two former senior career diplomats regarding the collective loss of experience due to early retirements and the adverse effects of the layoffs on future recruitment for the diplomatic corps. A senior State Department official mentioned that they are evaluating recruitment and retention strategies as part of an executive order, although a federal hiring freeze is still in effect.

Commitment to Reforming the State Department

State Department spokesperson Tammy Bruce praised the commitment and patriotism of the diplomats working within the agency. She clarified that the decision to cut positions is not a reflection of individual performance but a necessary step towards reforming a bureaucracy that has grown too large to function effectively. “This is about making sure that the State Department is able to operate in a manner that makes it relevant and effective. That is what the American people want,” Bruce stated.

While NBC News previously reported that the State Department was reviewing U.S. missions abroad—including the potential closure of consulates and embassies—a senior official indicated that there are currently no plans for further cuts. “We don’t have any plans for that right now, but good practice means a constant review and evaluation of how we’re doing our job,” the official concluded.

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