IRS lost 40% of IT staff, 80% of tech leaders in DOGE shakeup

Steven

IRS lost 40% of IT staff, 80% of tech leaders in DOGE shakeup

Summary

Massive staff losses at the IRS tech arm: CIO Kaschit Pandya told a panel that roughly 40% of IT staff and nearly 80% of technical executives left during 2025, prompting what he called the biggest reorganisation in two decades. The agency has broken down silos and created cross-functional teams and an overall “scorecard” approach, and is leaning on AI to improve delivery — but measurable improvements have yet to appear.

Numbers cited include an IT headcount of about 8,504 in October 2024 versus 7,135 in October 2025 (TIGTA / IRS reports). Around 1,000 tech staff were detailed to frontline tax-season duties, a move that some employees have questioned. TIGTA has also warned that staff reductions — including an approximate 16% loss in staff responsible for legislative updates — put implementation of tax-law changes at risk for the 2026 filing season.

Key Points

  • IRS CIO: approximately 40% of IT staff were lost in 2025 and nearly 80% of technical executives departed.
  • The agency launched a major reorganisation to break down departmental silos and form cross-functional teams focused on end-to-end delivery.
  • Reported IT headcount fell from ~8,504 (Oct 2024) to ~7,135 (Oct 2025), per TIGTA and reporting sources.
  • About 1,000 tech employees were reassigned to front-line tax-season duties, drawing internal concerns about the move.
  • AI is being positioned as a productivity enabler, but leadership insists AI is not a job-replacement tool — despite recent cuts.
  • TIGTA warns that staffing shortfalls — notably a ~16% loss in teams handling legislative updates — risk readiness for the 2026 filing season.

Context and relevance

This story matters to anyone tracking government IT, public-sector digitisation or the operational readiness of critical services. The cuts come amid broader federal reshaping under the current administration and signal real delivery risk: delays in digitising paper returns and in implementing recently enacted tax provisions could directly affect taxpayers and filing-season operations. It also illustrates the wider trend of agencies using reorganisation and AI to compensate for reduced headcount, with uncertain short-term outcomes.

Why should I read this?

Short and blunt: if you’re worried about whether the 2026 filing season will run smoothly, or you follow public-sector tech and AI-driven reorganisations, this is worth your five minutes. It’s not just numbers — it’s about whether critical tax systems and legislative updates can be delivered on time after a big brain-drain. We’ve read the detail so you don’t have to — and it isn’t comforting.

Source

Source: https://go.theregister.com/feed/www.theregister.com/2026/02/19/irs_job_cuts/