Full Breakdown
OPM Cuts Workforce by One-Third and Expands Deferred Resignation Program Amid Retirement-Processing Delays
7/21/2026, 10:18:15 PM
Core Event
The Office of Personnel Management (OPM) reduced its total headcount by 35 % between December 2024 and March 2026, according to a Government Accountability Office (GAO) report. The agency is now offering another round of voluntary separation incentives through its Deferred Resignation Program (DRP). Eligible employees must decide by the July 13 deadline, while staff aged 40 or older have until late August to respond. Those who accept will enter paid administrative leave at the end of August and formally separate in March 2027.
Background & Context
The staffing reductions follow the second Trump administration’s broader effort to shrink the federal workforce. GAO data show that more than half of OPM employees who left during this period had 11 + years of service, raising concerns about loss of institutional knowledge. Layoffs through a reduction-in-force accounted for 10 % of the cuts, while nearly 60 % left via the DRP.
Data & Statistics
- Headcount decline: 35 % (Dec 2024 – Mar 2026).
- Retirement services office staffing: down 16 % from FY 2024 to FY 2026.
- Merit System Accountability & Compliance division: over 40 % staffing cut.
- More than half of departing staff had 11 + years of service.
Official Statements & Responses
Former employees, however, report prolonged retirement-benefit delays. A former IRS employee who entered the DRP last year said she is still awaiting retirement checks, forcing her to draw on savings and credit cards. A former National Cancer Institute employee described a similar situation, noting that his application has been adjudicated but not yet reviewed.
Impact and Outlook
GAO warned that the cuts could exacerbate existing skills gaps and impair OPM’s operational capacity. The agency’s FY 2027 budget justification proposes using artificial-intelligence tools and modernized IT systems to maintain functions with fewer staff. Meanwhile, retirees awaiting benefits face financial strain, highlighting the tension between workforce downsizing and service delivery.
