IRS Loses 40% of IT Staff, 80% of Tech Leaders In ‘Efficiency’ Shakeup

The IRS’s IT division has reportedly lost 40% of its staff and nearly 80% of its tech leadership amid a federal “efficiency” overhaul, the agency’s CIO revealed yesterday. The Register reports: Kaschit Pandya detailed the extent of the tech reorganization during a panel at the Association of Government Accountants yesterday, describing it as the biggest in two decades. … The IRS lost a quarter of its workforce overall in 2025. But the tech team was clearly affected more deeply. At the start of the year, the team encompassed around 8,500 employees.

As reported by Federal News Network (FNN), Pandya said: “Last year, we lost approximately 40 percent of the IT staff and nearly 80 percent of the execs.” “So clearly there was an opportunity, and I thought the opportunity that we needed to really execute was reorganizing.” That included breaking up silos within the organization, he said. “Everyone was operating in their own department or area.”

It is not entirely clear where all those staff have gone. According to a report by the US Treasury Inspector General for Tax Administration, the IT department had 8,504 workers as of October 2024. As of October 2025, it had 7,135. However, reports say that as part of the reorganization, 1,000 techies were detailed to work on delivering frontline services during the US tax season. According to FNN, those employees have questioned the wisdom of this move and its implementation.