The Internal Revenue Service (IRS), for example, is currently furloughing over 45% of its employees. This announcement comes as the federal government shutdown enters its eighth day. This final ruling impacts roughly 34,000 employees. All of this follows an agency workforce that had already been cut by a quarter thanks to previous mass layoffs, leaving the agency with approximately 75,000 workers.
Originally, the IRS employed around 100,000 people. Now, with the furloughs in place, a little more than 39,870 of those employees— just 53.6% of that workforce— will report for duty. This comes amidst continued fiscal pressure on the agency. These furloughs are a direct result of the absence of appropriations and current, ongoing funding problems that are hurting government operations.
The IRS revealed its furlough plans in an unusual press release, in the form of a letter uploaded on its web page. That’s because 20,000 of its operations will be shut down. According to the agency, “Due to the lapse in appropriations, most IRS operations are closed.”
The furlough, which started on October 8, 2025, affected all employees except those specifically excepted or exempt. The IRS noted in their internal communications that “Employees who are not exempt or excepted are furloughed and placed in a non-pay and non-duty status until further notice. All employees should plan to report to work for their next tour of duty.”
The firm shifted from closing facilities to furloughing most of its employees once Trump was back in the White House, which the company announced on March 18th. One of the biggest pressures on the IRS during this time has been the budgetary pressures. Additionally, an internal draft memo suggested that the Trump administration might question its obligation to provide back pay to certain furloughed employees, raising concerns among staff.
The IRS already has complicated political headwinds. It’s now pushing through competing funding resolutions to address our immediate crisis. Efforts in the Senate to pass these concurrent resolutions have been unsuccessful to date.