The Federal Deposit Insurance Corporation (FDIC) fired several employees on Monday evening as part of the Trump administration's broader efforts to reduce the size of the federal workforce.
The FDIC, which monitors banks nationwide and insures deposits, notified its staff of the firings on Tuesday morning. An email obtained by Reuters informed staff that the agency had "separated certain probationary employees."
The exact number of employees fired remains unclear. However, a website maintained by the Department of Government Efficiency (DOGE) indicates that over 500 FDIC employees had been employed for less than one year.
Probationary employees in the federal government typically have one or two years of experience and enjoy fewer protections than longer-term workers.
An FDIC spokesperson declined to comment. Bloomberg Law first reported the firings.
The FDIC firings are the latest in a series of cuts across the federal government. The Trump administration has fired thousands of new hires as part of an effort to drastically reduce U.S. bureaucracy.
The cuts at the FDIC, which employs approximately 6,000 people, come despite warnings that the agency is already facing staffing challenges. An agency review of the 2023 failure of Signature Bank, one of several bank failures that spring, found that staff responsible for monitoring the bank experienced "frequent vacancies and continuous turnover" leading up to its collapse.
In a related development, the FDIC's inspector general warned in a 2024 report that 36% of the agency's workforce would be eligible for retirement in 2027, a rate higher than the government average.
10 Comments
Africa
“Finally, a move to trim excess government workforce – it’s time to cut bloated bureaucracy!”
Mariposa
“The Trump administration is showing that it won’t tolerate wasteful hiring practices in federal agencies.”
Muchacha
“Firing probationary employees can help weed out inefficiencies and pave the way for a leaner, more effective agency.”
Bella Ciao
“Downsizing a critical agency amid staffing challenges demonstrates a lack of respect for public service and accountability.”
Comandante
“Cutting inexperienced employees during a time of uncertainty shows a lack of long‐term planning – the FDIC is going to suffer!”
Eugene Alta
“Streamlining the FDIC is long overdue if it means a sharper focus on its core responsibilities of bank oversight.”
Loubianka
“Firing over 500 new hires might save a few dollars but will cripple the agency’s ability to monitor banks effectively.”
Katchuka
“These cuts are a necessary step in reining in government spending and increasing administrative efficiency.”
KittyKat
“I’m tired of political rhetoric disguised as efficiency; these cuts jeopardize essential bank-monitoring functions.”
Noir Black
“Short-term cuts at the FDIC might look good on paper but will hurt long-term oversight and consumer confidence.”