FDIC Looking To Reduce Staff By 1,250
An internal memo sent to staff last month at the Federal Deposit Insurance Corp. (FDIC) revealed that the agency is looking to reduce its staff by 1,250, a downsizing of 20 percent. The 1,250 figure includes roughly 500 employees who already agreed to the recently announced Deferred Resignation Program, as well as the “discontinuation of some non-permanent positions.”
According to PYMNTS, if the FDIC undertakes involuntary layoffs, they would start after May 13. The agency may reject some staff members’ offers to leave depending on their role, as mission-critical positions are to remain filled. Mission-critical positions include employees whose work centers around resolving failed banks, information security, and management examinations.
Other staff reductions will come from two different initiatives: the Voluntary Early Retirement Authority and the Voluntary Separation Incentive Program, though neither will be available for mission-critical positions. FDIC employees will have received an email offering reduction options, and can apply until May 5.
The FDIC’s memo aligns with President Trump’s efforts to use the Department of Government Efficiency to bring transparency to federal spending and ensure “taxpayer dollars are spent wisely and effectively.” However, the FDIC is funded mostly by premiums paid by member banks and savings associations rather than taxpayers.
Alternatively, the staff cuts don’t align with a recent FDIC Office of the Inspector General report, which stated that attrition could jeopardize the agency’s ability to resolve bank failures and examine lenders.
“With fewer examiners but the same responsibility to conduct statutorily required exams in 2025, it may be difficult for the FDIC to complete these examinations by the end of the year,” the report said, according to Banking Dive.
