Donald Trump administration has announced cut of 10,000 positions to the Health and Human Services department's workforce. Health Secretary Robert F. Kennedy Jr's announcement says the job cuts will save the sprawling department about $1.8 billion annually, by reducing staff from 82,000 to 62,000.
HHS sent a formal reduction in force, or RIF, notice to American Federation of Government Employees union leaders early on Thursday morning. An email from Thomas J. Nagy Jr., Deputy Assistant Secretary for Human Resources at HHS, revealed that approximately 8,000 to 10,000 employees are expected to be impacted by the layoffs, with the likely effective date set for May 27, CNN reported.
“The restructuring will address this and serve multiple goals without impacting critical services. First, it will save taxpayers $1.8 billion per year through a reduction in workforce of about 10,000 full-time employees who are part of this most recent transformation." an official press release said.
"When combined with HHS’ other efforts, including early retirement and Fork in the Road, the restructuring results in a total downsizing from 82,000 to 62,000 full-time employees.”, the HHS press release read.
HHS said that cuts will include:
Robert Kennedy Jr, also announced that the functions of the HHS will henceforth be streamlined. “Currently, the 28 divisions of the HHS contain many redundant units”, the press release said.
The restructuring plan of HHS will consolidate the 28 divisions into 15 new divisions, including a new Administration for a Healthy America, or AHA, and will centralize core functions such as Human Resources, Information Technology, Procurement, External Affairs, and Policy.
Regional offices will be reduced from 10 to 5, the statemeny said.
The HHS press release further mentioned that the announced overhaul will implement the “new” HHS priority of ending America’s epidemic of chronic illness by focusing on safe, wholesome food, clean water, and the elimination of environmental toxins.
“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,” HHS Secretary Robert F. Kennedy Jr. said in a statement. “This Department will do more – a lot more – at a lower cost to the taxpayer.”
But the agency also said that it will ensure that Medicare, Medicaid and other essential health services will “remain intact” in the restructuring.
Catch all the Business News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.