January 30, 2024, Washington, DC’s US Federal Reserve System.
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The Federal Reserve will seek to cut 10% over the next few years, including providing long-time employees with postponed resignations, central bank Jerome Powell said in a memo.
“The experience here and elsewhere shows that it’s healthy for every organization to regularly look at staffing and resources. The Fed has done that from time to time because our work, priorities, or external environment has changed,” Powell said in a memo obtained by CNBC.
The central bank chief added that across the Fed has directed leaders to “integrate functions as needed and find progressive ways to modernize some business practices, ensuring we are on the right scale and meet statutory duties.” One way to reduce staff is to offer a voluntary postponed resignation program to Federal Reserve Commission employees who are eligible to retire entirely at the end of 2027.
The central bank said in its 2023 annual report that it had fewer than 24,000 employees. With a 10% reduction, that number is less than 22,000.
The memo comes when the Trump administration is led by Elon Musk and the so-called Government Efficiency Bureau, calling for cost cuts across civil servant agencies. Musk previously called the Fed “overcovered with absurdity.” Powell’s memo did not refer to masks or doges as factors in their decision to reduce personnel.
The planned staff cut was first reported by Bloomberg News.
– Matt Cuddy of CNBC reported.
