U.S. Veterans Affairs plans nearly 30,000 job cuts, avoids layoffs

WASHINGTON D.C., UNITED STATES — The United States Department of Veterans Affairs (VA) has slashed 17,000 jobs but ruled out widespread layoffs despite earlier plans for deeper cuts.
In an article published in Healthcare IT News by Andrea Fox, she reports that VA Secretary Doug Collins confirmed the agency will shrink by another 12,000 employees through attrition and hiring freezes while maintaining veteran care.
Workforce reduction without disrupting veteran services
Despite the cuts, Collins emphasized that a department-wide reduction in force is unnecessary, citing improved efficiency and a 30% drop in disability claim backlogs since January.
Critical roles remain protected, with over 350,000 positions exempt from hiring freezes. The agency insists that the downsizing—totaling nearly 30,000 jobs this fiscal year—will not affect veteran care or benefits, citing record-high claims processing and streamlined survivor benefits.
Bureaucracy cuts and operational overhauls drive savings
The VA reorganization involves merging 274 call centers, centralizing payroll, and eliminating administrative redundancies. These reforms, coupled with stagnant diversity efforts and a shift to returning to the office for 60,000 workers, aim to refocus attention on frontline services.
Further reforms include restarting electronic health record (EHR) deployments and ending gender dysphoria treatment.
An interagency agreement with the Office of Personnel Management could still permit workforce reductions of up to 80,000. However, Collins emphasized that current cuts result from natural attrition rather than forced layoffs.
U.S. Senate questions transparency as VA pledges service improvements
The questions over transparency arose during the revamping when the U.S. Senate inquired about the VA staff’s nondisclosure agreement last month. Nevertheless, Collins also assured that the agency will continue its promise, saying, “Since March, we’ve been conducting a holistic review of the department centered on reducing bureaucracy and improving services to Veterans.”
Collins also noted that, “As a result of our efforts, VA is headed in the right direction – both in terms of staff levels and customer service,” highlighting their continuous effort and commitment to providing better services.