A reduction in force is the process an agency must follow when it eliminates jobs because of a lack of work, budget cuts, reorganization, or similar reasons, rather than for an employee's performance or conduct. Rules dating to the Veterans' Preference Act of 1944, now set out in regulations of the Office of Personnel Management, govern who is released first. The government last cut its workforce on a large scale in the 1990s, when about 400,000 positions were eliminated, mostly through buyouts and attrition under the Federal Workforce Restructuring Act of 1994.
In a reduction in force, employees in the affected competitive area are ranked by tenure, veterans' preference, length of service, and performance ratings. Higher-ranked employees whose positions are abolished may bump lower-ranked employees or retreat to positions they previously held, and those released may receive severance pay and priority for other federal jobs. Employees must generally receive at least 60 days' written notice, and they may appeal to the Merit Systems Protection Board. Agencies often offer early retirement or buyouts first to reduce the need for layoffs.
In February 2025 an executive order directed agencies to prepare large-scale reductions in force and reorganization plans, and many agencies issued layoff notices to tens of thousands of employees. Lower courts blocked some of the plans, but on July 8, 2025, the Supreme Court allowed the administration to proceed while challenges continued, and during the fall 2025 shutdown agencies issued additional notices that were reversed by the law ending the shutdown in November. Supporters said the cuts were needed to shrink an oversized bureaucracy, while critics said they were rushed, ignored legal requirements, and harmed public services.
| Status | Active |
| Abbreviation | RIF |
| Legal basis | 5 U.S.C. 3501 to 3504, 5 CFR Part 351, Veterans Preference Act of 1944 |
| Official site | opm.gov |
| Purpose | Eliminating positions for budget or organizational reasons |
| Retention factors | Tenure, veterans' preference, service length, performance |
| Notice | Generally at least 60 days |
| Appeals | Merit Systems Protection Board |
| 1990s downsizing | About 400,000 positions |
| Rules | 5 CFR Part 351 |
| Date | Retention rules since the Veterans Preference Act of 1944 |