IRS Loses 40% of IT Staff, 80% of Tech Leaders In 'Efficiency' Shakeup
Slashdot
by BeauHDFebruary 20, 2026
AI-Generated Deep Dive Summary
The IRS has faced a significant shakeup in its IT division, losing approximately 40% of its staff and nearly 80% of its tech leadership as part of a federal "efficiency" overhaul. Kaschit Pandya, the agency's CIO, revealed during a panel discussion that this reorganization was the largest in two decades. The IT department, which had around 8,500 employees at the start of 2025, dropped to 7,135 by October 2025. This restructuring aimed to eliminate silos within the organization and improve operational efficiency.
The reorganization also involved reallocating about 1,000 IT staff to support frontline services during the busy tax season. However, this move has been met with skepticism from employees who questioned its implementation and potential impact on long-term goals. Pandya emphasized that while challenges exist, the reorganization was necessary to address inefficiencies and better align resources with agency priorities.
Despite the reductions, the IRS lost a quarter of its workforce overall in 2025, with the tech division bearing the brunt of these cuts. The departure of so many IT professionals raises concerns about the agency's ability to maintain critical systems and deliver timely services to taxpayers. Pandya acknowledged the difficulties but expressed confidence that the reorganization would lead to better outcomes for both employees and customers.
This situation highlights the broader challenges faced by government agencies in balancing workforce management with operational efficiency. For tech professionals, it underscores the importance of adaptability in navigating organizational changes and the potential risks of large-scale restructuring efforts. The IRS's experience serves as a cautionary tale about the complexities of implementing sweeping reforms without compromising service quality or staff morale.
Ultimately, while the IRS aims to streamline operations, questions remain about whether these drastic cuts and reassignments will achieve their intended goals. For those interested in tech and government efficiency, this story offers insights into the challenges of modernizing IT infrastructure and managing human resources during periods of significant change.
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Originally published on Slashdot on 2/20/2026