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OPM Reduces Workforce by One-Third and Seeks Further Cuts

The Office of Personnel Management has reduced its staff by 35% via resignations and layoffs, and is now offering new incentives for further cuts in its insurance division.

Published July 22, 2026 at 2:30 PM EDT
OPM Reduces Workforce by One-Third and Seeks Further Cuts

The Facts

Who
Office of Personnel Management (OPM), Government Accountability Office (GAO)
What
Staffing reductions and voluntary separation incentives at the Office of Personnel Management.
When
July 2026
Where
Washington, D.C.
Why
To reduce agency headcount through deferred resignations and reductions in force.

The Office of Personnel Management (OPM) reduced its workforce by 35% between December 2024 and March 2026, according to a report from the Government Accountability Office (GAO). The data indicates that more than half of those leaving had 11 or more years of service. Approximately 60% of these departures occurred through a deferred resignation program (DRP), while 10% resulted from reductions in force.

The agency is currently seeking additional staffing reductions by offering a new round of voluntary separation incentives to employees within its healthcare and insurance division. Eligible employees who accept the DRP offer will be placed on paid administrative leave starting in late August and will officially separate from federal service in March 2027. OPM set a deadline of July 13 for most employees to opt in, with a late August deadline for those age 40 or older.

The GAO report stated that the loss of experienced staff has reduced institutional knowledge and may exacerbate existing skills gaps. Additionally, some former employees who accepted previous resignation offers reported delays in receiving retirement checks, with some waiting nearly a year for finalized paperwork. Former staff members told reporters they have used personal savings or credit cards to cover expenses during these processing delays.

An OPM spokesperson stated that the agency is confident in its current staffing levels and its ability to manage the upcoming healthcare Open Season beginning in November. The spokesperson also noted that the agency remains committed to modernizing its retirement processing systems and ensuring benefits are delivered as it transitions away from paper-based records.

This story was rewritten from reporting at Government Executive. Read the original for full detail.

Summaries are written by The Plain Record to state the facts of a story plainly and without political slant. See our editorial standards, or report a correction.

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