February 27, 2025
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The federal government is undergoing a major transformation, and nowhere is that more evident than in the recent workforce cuts at
the Internal Revenue Service (IRS). In a significant move, the agency has reduced its staff by 6,700 employees—less than half of the original 15,000 positions initially slated for layoffs. While these reductions have sparked concern, they also offer a case study in how federal agencies can manage workforce restructuring effectively. Dr. Ronald Sanders, former Chief Human Capital Officer (CHCO) at the Office of the Director of National Intelligence (ODNI) and current President and CEO of Public Virtue, brings decades of experience to the discussion. He emphasizes that this process is far from a simple downsizing effort—it is a long-term game requiring careful strategy, collaboration, and leadership.
A Balancing Act: Career vs. Political Leadership
Sanders highlights the critical role of career staff in ensuring these workforce decisions are both effective and fair. He explains that career leaders, who have deep institutional knowledge, are essential in identifying where cuts can be made without crippling operations. At the same time, political appointees must be willing to trust their career counterparts and seek their guidance.
“It takes two to dance here,” Sanders says. “It takes political appointees willing to say to their career folks, ‘You know where the bodies are buried—help me so that we’re not embarrassed.’ And it takes career folks who are going to be receptive to those appointees.”
He underscores that career officials are sworn to uphold lawful orders and should be proactive in advising political leaders on workforce decisions. The IRS layoffs demonstrate what happens when this collaboration works as intended: an initial list of over 15,000 names is carefully reviewed, and through meticulous evaluation, career leaders reduce the number to 6,700 to minimize disruption.
The Importance of Trust in Workforce Decisions
However, Sanders acknowledges that trust between career and political leaders is fragile, particularly in the current environment. The turnover of administrations, shifting priorities, and heightened scrutiny from both Congress and the public often create tension.
“If you’re a career person who wants to restore trust, start with the oath,” Sanders advises. “Go to your new leadership and say, ‘Look, I swore an oath to serve you. Your orders need to be lawful, but if they are, I will salute and execute them the right way.’”
That commitment, he says, is the foundation of good government. It reassures political leaders that career staff are there to help implement policies rather than push personal agendas. At the same time, Sanders believes appointees must recognize the value of experienced career professionals and engage them in meaningful dialogue.
While agencies play a key role in implementing workforce changes, Congress ultimately determines the broader structure through budget decisions, headcount limits, and legislative actions. Sanders predicts that as part of future budget deals, agencies will receive specific workforce reduction targets that must be met.
“When those targets come down, agency leaders—both career and political—must work together to figure out how to meet them without breaking essential functions,” he explains. “This is not about gutting the government. It’s about making it work smarter.”
Lessons for Federal Agencies from the IRS Layoffs
The IRS workforce reductions serve as a model for other agencies facing similar challenges. According to Sanders, several key lessons emerge from this process:
- Collaboration is Key: Political appointees must trust career staff to guide decisions, while career officials should be proactive in supporting lawful policy changes.
- Precision Matters: Workforce reductions should be done strategically, avoiding broad, indiscriminate cuts that harm essential services.
- Communication is Crucial: Agencies must be transparent with employees about workforce decisions and ensure that those affected are treated with respect.
- Congress Sets the Stage: Federal leaders must engage with lawmakers to understand expectations and shape realistic workforce plans.
The Future of Workforce Management in Government
Beyond the immediate impact of the IRS layoffs, Sanders sees these changes as part of a broader shift in how the government operates. With advances in technology, evolving workforce needs, and budget constraints, federal agencies must rethink how they structure their teams.
The closure of the Office of Personnel Management’s (OPM) acquisition office, for example, raises questions about how agencies procure essential services. Sanders notes that while some functions can be consolidated, the transition must be carefully managed to prevent disruptions.
Additionally, the role of artificial intelligence and automation in federal workforces will likely grow, influencing future hiring and restructuring efforts. Agencies will need to strike a balance between efficiency and maintaining the institutional knowledge that experienced employees bring.
Final Thoughts: A Long Game, Not a Quick Fix
As Sanders reiterates, these workforce changes are just the beginning. The federal government is in the early stages of a long-term transformation that requires careful planning, strong leadership, and a commitment to public service.
“This will be painful,” he admits. “People will lose their jobs, and agencies will have to make tough decisions. But we cannot let public servants become pawns in political battles. The goal should be to get it done professionally and with integrity.”
Ultimately, Sanders calls on agency leaders, political appointees, and career officials alike to focus on what’s best for government operations and the people they serve. By fostering trust, making informed decisions, and planning for the future, agencies can navigate these challenges successfully and emerge stronger in the long run.
You can read Dr. Sanders’ LinkedIn posts here
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