Federal Reserve Set to Cut Workforce by 30% in Reorganization Drive

The U.S. Federal Reserve is poised for significant restructuring, as top official Michelle Bowman has announced a 30% reduction in the agency's supervision and regulation division staff. This initiative, reported by Bloomberg News, will primarily utilize attrition, retirements, and voluntary separation incentives to achieve a new staff total of 350 employees by the end of 2026.

Reports indicate that these changes were prompted by a memo shared during a recent event, though Reuters has yet to confirm the report's details independently. The reorganization also echoes broader federal initiatives focused on streamlining operations, aligning with directives from President Donald Trump's administration.

In a broader context, Fed Chair Jerome Powell has encouraged leadership to find ways to incrementally reduce the central bank's workforce, which consists of approximately 24,000 employees nationwide. This move is part of a broader plan to adjust the supervisory framework for large banks and enhance operational efficiency.