The Social Security Administration (SSA) is preparing for significant workforce reductions, with up to 50% of its 60,000 employees potentially facing layoffs, according to sources familiar with the matter.
The restructuring is part of a wider federal initiative under the Department of Government Efficiency (DOGE), a division led by Elon Musk under the Trump administration.
Major Restructuring Plans Raise Concerns
The SSA, responsible for administering benefits to over 72.5 million Americans, has confirmed that “significant workforce reductions” are on the horizon.
According to an internal agency communication, the organisation intends to reassign employees from non-critical positions to direct service roles, while also offering voluntary separation agreements. However, some reassignments “may be involuntary” and require staff to undergo retraining.
Two sources familiar with the agency’s plans, speaking on condition of anonymity, revealed that SSA Acting Commissioner Leland Dudek recently met with management to outline a plan to eliminate half of the agency’s workforce. This includes both headquarters in Washington, D.C. and regional offices across multiple states.
In addition, DOGE has reportedly begun terminating leases for Social Security offices in several states, including Arkansas, Texas, Louisiana, Florida, Kentucky, and North Carolina, as detailed on its official website. The site, which maintains a “Wall of Receipts” documenting federal efficiency measures, suggests that further office closures may follow.
Potential Impact on Social Security Beneficiaries
While the full implications of these cuts remain uncertain, advocates and lawmakers warn of possible disruptions to Social Security services. According to Nancy Altman, president of Social Security Works, the reductions could result in longer wait times, office closures, and a decline in the agency’s ability to assist recipients.
“The Social Security Administration is already chronically understaffed. Now, the Trump administration wants to demolish it,” Altman stated. She cautioned that many Americans may face delays in accessing their benefits, particularly in rural areas where local SSA offices may close.
The move comes at a time when Social Security faces long-term financial challenges. According to the May 2024 Social Security and Medicare trustees’ report, the agency’s trust funds are projected to be unable to pay full benefits by 2035, at which point only 83% of benefits could be covered without congressional intervention.
