The Federal Deposit Insurance Corp. (FDIC) plans to reduce its workforce by over 1,200 employees as part of the Trump administration’s broader efforts to cut the federal workforce. The reductions will occur through voluntary retirements, separations, and leaving vacant positions unfilled. If insufficient staff opt for voluntary exits, a formal reduction-in-force process will begin on May 13. Approximately 170 probationary employees have already been terminated, though legal challenges remain. The FDIC, responsible for insuring U.S. bank deposits up to $250,000 and overseeing bank closures, had around 6,200 employees at the start of the year. Not all units will face cuts, and eligible employees have until May 5 to accept voluntary dismissals. Mission-critical roles, such as bank resolution and risk management, are unlikely to see staff reductions.
— new from Bloomberg Law News
