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U.S. Food and Drug Administration (FDA): 3,500 positions eliminated
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Centers for Disease Control and Prevention (CDC): 2,400 jobs slashed
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National Institutes of Health (NIH): 1,200 layoffs
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Centers for Medicare & Medicaid Services (CMS): 300 reductions
In addition to workforce cuts, HHS plans to consolidate 28 divisions into just 15, aiming for leaner and more agile operations.
Industry Concerns and Fallout
While government officials tout the reorganization as a win for efficiency, outside experts caution that such sweeping reductions could have unintended consequences.
“Every new administration provides an opportunity for policy realignment and efficiency,” said Lisa M. Dwyer, a partner at King & Spalding LLP and former FDA official. “But I have concern about the size of the proposed cuts at FDA—3,500 employees—because it could impact morale and impede the agency’s ability to fulfill its mission of protecting public health.”
The latest cuts also come amid a period of uncertainty for federal workers, with some employees previously let go and later reinstated, including legal staff handling Medicare appeals. The Departmental Appeals Board, a key player in Medicare disputes, was not explicitly addressed in the restructuring announcement, aside from noting that a newly appointed assistant secretary for enforcement will oversee the board.
