HP Inc. announced a global workforce reduction of 4,000 to 6,000 employees by fiscal 2028, primarily impacting product development, internal operations, and customer support teams, with the goal of streamlining operations and leveraging AI. This initiative is expected to generate $1 billion in gross run rate savings over three years. The company is also navigating challenges from rising memory chip prices, driven by increased demand from data centers, anticipating the impact in the second half of fiscal 2026. While Q4 revenue exceeded expectations, HP anticipates adjusted profit per share for fiscal 2026 to be slightly below analyst estimates.
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NASA is experiencing a significant workforce reduction, with nearly 4,000 employees opting to leave the agency through a deferred resignation program, representing an estimated 20% of its workforce. These departures stem from the Trump administration’s plan to decrease the federal workforce, aligning with recommendations from the Department of Government Efficiency. While the administration has proposed budget cuts for NASA, potentially impacting the agency, the agency has also received additional funding through 2032 for Mars missions and lunar plans. This has led to criticism and letters of dissent from scientists, space organizations, and current and former NASA employees.
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Google is offering buyouts to U.S.-based employees across multiple divisions, including its core search, ads, and commerce units, as part of ongoing headcount reduction efforts. This “voluntary exit program” follows a previous round of 12,000 layoffs and aims to streamline operations. The initiative is particularly focused on employees who are not meeting performance expectations or feel misaligned with the company’s strategy. Concurrently, Google is mandating office returns for some remote employees and refocusing its internal training on AI tools.
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A California judge issued a temporary restraining order halting the Trump administration’s widespread federal workforce reduction, citing a lack of Congressional cooperation as mandated by law. The order, impacting numerous agencies including Health and Human Services, Agriculture, and the EPA, prevents further implementation of the February executive order and subsequent memos. The judge’s decision followed a lawsuit by labor unions and cities highlighting detrimental impacts, such as delayed disaster aid and increased Social Security wait times. While the administration argued the directives provided only general guidance, the court found the actions exceeded executive authority. The temporary restraining order will expire in 14 days.
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On Friday, the Department of Health and Human Services (HHS) offered approximately 80,000 employees a voluntary separation incentive payment, with a March 14th deadline. This follows HHS Secretary Robert F. Kennedy Jr.’s comments about wanting to remove certain staff and aligns with broader efforts by the Trump administration and Elon Musk to significantly reduce the federal workforce. The buyout program, offering up to $25,000, mirrors a similar initiative undertaken earlier this year. Experts warn that staff reductions at HHS could hinder the agency’s ability to implement Kennedy’s policy goals.
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Federal employee unions have sued Elon Musk and the Office of Personnel Management (OPM) over an email demanding all federal workers justify their jobs within a short timeframe or face termination. The lawsuit alleges this action violates federal workforce laws and exceeds OPM’s authority. Conflicting guidance from various agencies, including some Trump appointees instructing staff *not* to respond, further fueled confusion and worker anxieties. This latest action is part of a broader effort by Musk, under President Trump’s direction, to drastically reduce the federal workforce, leading to widespread criticism and legal challenges.
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Approximately 7,000 IRS employees, including probationary workers in compliance departments, were laid off as part of the Trump administration’s effort to reduce the federal workforce. These layoffs, overseen by the Department of Government Efficiency, disproportionately impacted probationary employees with less than a year of service, despite a prior delay in buyout offers for employees involved in the 2025 tax season. The impact on tax collection services remains uncertain, particularly considering the IRS’s recent success in collecting billions in back taxes from wealthy individuals. This action has sparked criticism, with one laid-off employee expressing dismay at the administration’s approach.
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The National Science Foundation (NSF) terminated approximately 168 employees, representing roughly 10% of its workforce, citing President Trump’s executive order mandating federal workforce reduction. The firings disproportionately affected probationary and temporary employees, including program officers crucial for grant management and research oversight. Many terminated employees reported exemplary performance records, leading to accusations of unfounded dismissals and concerns about the legality of the actions. This mass termination is expected to significantly hinder the NSF’s ability to manage its $9 billion budget and support crucial scientific research.
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The IRS will begin laying off thousands of probationary employees as early as next week, amidst a Trump administration-initiated federal workforce reduction. This action follows a failed attempt to reduce the workforce via buyouts, with IRS employees involved in the 2025 tax season barred from participating until after the filing deadline. The layoffs occur despite recent significant funding increases for the IRS, and amid ongoing legal challenges to Elon Musk’s Department of Government Efficiency’s sweeping plans to drastically reduce federal spending and agencies. The number of affected IRS employees remains unclear.
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A deadly midair collision at Reagan National Airport followed the FAA’s offer of resignations to employees with eight months’ pay, prompting concerns about the implications of downsizing the federal workforce. The timing of the offer, coupled with existing air traffic controller shortages, raised questions about the potential impact on aviation safety. Although no direct link exists between the downsizing effort and the crash, experts warn that destabilizing the workforce jeopardizes crucial services and public safety. The administration’s approach, characterized as sweeping rather than targeted, has fueled concerns about recruiting and retaining essential personnel, particularly in already understaffed areas.
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John Q. Hosedrinker