Categories: BusinessEconomy

SSA Might Slash Workforce by Half

WASHINGTON — The Social Security Administration (SSA) is gearing up to implement a plan that would lay off a significant portion of its 60,000 employees. This decision comes amid efforts to downsize federal agencies, spearheaded by the Trump administration’s Department of Government Efficiency. As per two insiders who requested anonymity, the reduction in SSA’s workforce could range from 7,000 layoffs to potentially as high as 30,000, which would account for half of the current workforce.

The direct impact of these layoffs on the 72.5 million beneficiaries who rely on Social Security for retirement and disability benefits is yet uncertain. Democratic lawmakers and advocates have raised alarms that cutting the workforce could severely impair the agency’s capability to deliver timely services. Some even equate this reduction in workforce to an indirect cut in benefits.

In an official statement released on Friday, the SSA revealed plans for “substantial workforce reductions” and mentioned reallocating employees from non-essential roles to mission-critical positions. This restructuring could involve “involuntary reassignments” necessitating retraining for new duties. Additionally, the SSA is offering voluntary separation agreements to its employees as part of the process.

The SSA’s latest measures align with the Trump administration’s push to reduce the federal workforce, guided by the Department of Government Efficiency, under the leadership of President Trump’s advisor, Elon Musk. Efforts to reach SSA for comments on this development have gone unanswered.

Reports indicate that Leland Dudek, the SSA’s new acting commissioner, has already briefed management teams to devise a strategy to eliminate a substantial portion of the workforce at SSA’s main and regional offices. According to the Department of Government Efficiency’s online “Wall of Receipts,” plans are already in motion to end office leases for numerous Social Security locations across several states, including Arkansas, Texas, and Florida.

Nancy Altman, the president of Social Security Works, a prominent advocacy group, criticized the cuts, warning they would deny numerous Americans access to their Social Security benefits. She predicts closures of numerous field offices and a significant increase in wait times for SSA’s national helpline service.

Social Security remains a cornerstone of U.S. social safety nets and enjoys extensive public support. However, it’s faced with financial sustainability challenges. Recent trustees’ reports indicate that without Congressional intervention, Social Security trust funds may only be able to disburse 83% of promised benefits by 2035 due to fund depletion.

Concerns over DOGE’s integration into the SSA as dictated by Trump’s executive order grow among career officials. Complications arose when the SSA’s prior acting commissioner, Michelle King, resigned in the wake of DOGE’s demand for access to beneficiary information.

Senator Ron Wyden of Oregon has also voiced apprehensions, hypothesizing that the planned office closures would disproportionately affect seniors in rural areas. Other media reports, including those by The American Prospect and The Washington Post, echo the fear of extensive workforce cuts within the SSA.

@USLive

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@USLive

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