Shutdown Fallout: White House Orders Mass Federal Layoffs

President Donald Trump looks on during the announcement of a deal to lower drug prices with drug maker AstraZeneca at the Oval Office of the White House in Washington, DC, on October 10, 2025.

The White House confirmed Friday that thousands of U.S. government employees have been laid off as the federal shutdown drags into its second week. Officials described the move as part of a sweeping “reduction in force” across multiple agencies, including the Treasury Department, Health and Human Services, Education, Commerce, and Homeland Security’s cybersecurity division.

According to the Office of Management and Budget, more than 4,000 workers received termination notices in the first wave, with the Treasury and health agencies hit hardest. Nearly 1,500 Treasury employees, including IRS staff, and over 1,000 health workers were among those affected.

President Donald Trump defended the decision, blaming Democrats for the budget impasse that triggered the shutdown. “They started this thing,” he told reporters, calling the layoffs “Democrat-oriented”.

Union leaders and worker advocates condemned the cuts, warning that the loss of staff will disrupt essential services, from tax processing to public health monitoring. The American Federation of Government Employees, which represents 800,000 workers, has already filed a lawsuit challenging the layoffs.

With Congress still deadlocked and no funding deal in sight, the shutdown’s impact is widening—leaving federal workers and the public bracing for deeper consequences in the weeks ahead.