IRS Loses 40% of IT Staff, 80% of Tech Leaders In 'Efficiency' Shakeup

Source: Slashdot

Overview

The IRS’s IT division has lost roughly 40 % of its staff and nearly 80 % of its tech leadership as part of a federal “efficiency” overhaul, according to the agency’s chief information officer, Kaschit Pandya.

Details of the Reorganization

• Scale: Pandya described the changes as the biggest tech reorganization in the IRS in two decades during a panel hosted by the Association of Government Accountants.
• Workforce numbers:
  • At the start of 2025, the IRS tech team comprised about 8,500 employees.
  • By October 2024 the IT department had 8,504 workers.
  • By October 2025 that number had fallen to 7,135.
• Leadership losses: “Last year, we lost approximately 40 % of the IT staff and nearly 80 % of the execs,” Pandya told Federal News Network (FNN).

Goals of the Shake‑up

Pandya said the reorganization aimed to break up silos and improve coordination:

“Everyone was operating in their own department or area. So clearly there was an opportunity, and I thought the opportunity that we needed to really execute was reorganizing.”

Impact on Frontline Services

• Approximately 1,000 technologists were reassigned to deliver frontline services during the tax season.
• Some of those employees have questioned the wisdom and implementation of the move, according to FNN.

Sources

• The Register: reporting on Pandya’s panel remarks.
• Federal News Network (FNN): interview and analysis.
• US Treasury Inspector General for Tax Administration: workforce figures.
• Read more of this story at Slashdot.