Thursday, March 27, 2025

HHS: Downsizing Announced, At Least 10,000 Employees

On March 27, 2025, HHS released a notice that HHS would be substantially reorganized, with departments and divisions merged.   There will 10,000 positions directly cut, and HHS estimates that early retirement and similar initiatives will result in a 20,000 decrease in personnel - from 82,000 to 62,000.

https://www.hhs.gov/about/news/hhs-restructuring-doge.html

Regional offices drop from 10 to 5; operating divisions drop from 28 to 15.   

'Policy" will be reorganized.  HHS writes that '"H.R., I.T, procurement, external affairs, and 'policy' " will be in a new core division, "Administration for a Health America" or AHA.

Secretary RFK Jr said, “We aren't just reducing bureaucratic sprawl. We are realigning the organization with its core mission and our new priorities in reversing the chronic disease epidemic."

He added, "The department will do more - a lot more."

Fierce Healthcare reported there would be only 300 cuts at CMS (4%), not effecting Medicaid and Medicare benefits.   Fierce Healthcare also offered this RFK quote: “Some of these little fiefdoms, for example, are so insulated and territorial that they actually hoard our patient medical data and sell it for profit to each other,” he said, adding some public health divisions are “neglecting” public health and are only interested in helping the industries they are supposed to regulate.  "

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The full press release is detailed and can be found here at HHS:

https://www.hhs.gov/about/news/hhs-restructuring-doge.html

Open access coverage at Fierce Healthcare:

https://www.fiercehealthcare.com/regulatory/rfk-jr-prepares-10000-job-cuts-across-hhs-new-wave-worker-reductions

Open access coverage at Fierce Biotech (focus includes FDA, NIH):

https://www.fiercebiotech.com/biotech/nearly-5000-fda-and-nih-staffers-laid-hhs-eliminates-entire-alphabet-soup-departments

Biopharma Dive here:

https://www.biopharmadive.com/news/hhs-layoffs-restructuring-kennedy-fda-cms-trump/743694/

Politico:   https://www.politico.com/news/2025/03/27/hhs-to-cut-thousands-of-workers-in-sweeping-reorganization-00253359

The Hill:  https://thehill.com/policy/healthcare/5217175-hhs-workforce-reduction-kennedy/

STAT offers a projection of 90% staff cuts at AHRQ, which houses USPSTF.   STAT also recently published an article, 8 key personnel at HHS.

https://www.statnews.com/2025/03/20/hhs-ahrq-agency-responsible-for-health-care-quality-research-threatened-with-mass-layoffs/

https://www.statnews.com/2025/03/18/rfk-jr-hhs-who-to-know-series-profiles-eight-key-players-federal-health-policy/

NYT here.   WSJ here.  Endpoints here.  


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For history, see Politico's forecast of HHS cuts from March 13   https://www.politico.com/news/2025/03/13/hhs-reorganization-00230113