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US state dept begins layoffs as SC ruling clears path for federal firings

US state department staffers have been informed of layoffs after a Supreme Court order overturned an injunction against executive-led agency restructuring without Congressional approval

Layoffs begin at US State Department amid Trump-led government overhaul

Supreme Court ruling paves way for sweeping Trump-era agency layoffs | Photo: Bloomberg

Vasudha Mukherjee New Delhi

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Layoffs are on the horizon at the United States Department of State, and the department has started notifying staff. The development is part of the Trump administration’s sweeping overhaul of the federal bureaucracy. The move follows a recent Supreme Court ruling that cleared the way for staff reductions, even as legal challenges contesting the action remain unresolved.
 
Deputy Secretary for Management and Resources Michael Rigas confirmed Thursday (local time) that reduction-in-force (RIF) notices would soon be issued.
 
“Soon, the Department will be communicating to individuals affected by the reduction in force,” Rigas said. He added that the cuts aim to “focus resources on policy priorities and eliminate redundant functions”, while “increasing accountability”.
 
 

Court ruling overturns earlier block on agency cuts

The Supreme Court ruling, handed down this week, overturned a May 22 injunction by San Francisco-based District Judge Susan Illston, who had argued that “the president may broadly restructure federal agencies only when authorised by Congress”. By reversing that order, the court cleared the way for reductions to proceed not only at the state department but also across a wide swath of federal agencies, including the departments of agriculture, commerce, health and human services, treasury, and veterans affairs. 
 
According to an Associated Press report, the state department is expected to implement an 18 per cent reduction in domestic staffing, surpassing the 15 per cent cut outlined earlier this year.
 
A revised reorganisation plan submitted to Congress in May also proposes deeper program cuts than previously reported, including those overseen by Senator Marco Rubio.
 

US bureaucracy overhaul led by DOGE

This move comes amid a broader push by the Trump administration to shrink the federal government, led in part by the Department of Government Efficiency, an agency formerly headed by Elon Musk.
Among the offices targeted for closure are those linked to Afghanistan war oversight and Afghan national resettlement support, as well as refugee aid, human rights monitoring, and democracy promotion initiatives.
 

Diplomats say firings could undermine national interest

The impending layoffs have triggered alarm among US diplomats and foreign service representatives. The American Foreign Service Association (AFSA) has urged the administration to postpone job cuts, warning that sudden personnel reductions could undermine US national interests. 
 

Justice department, FBI employees pushed out

Concerns extend well beyond the US state department. According to a report by the Washington Post, the US justice department and FBI employees are also being dismissed or forced out, often without explanation or notice. 
Unlike the broader reorganisations at agencies, these justice department removals appear to be more targeted. Anonymous sources cited in the report spoke of rising fear and confusion, particularly at the FBI, where some employees have reportedly been asked to resign, accept demotion, or face termination. 
The departures have worsened shortages in key divisions, including US attorney offices in Washington and Los Angeles.
 

Legal hurdles remain as Trump pushes ahead

Though the State Department’s layoffs are being framed as a cost-cutting measure aligned with President Trump’s ‘America First’ agenda, critics argue the cumulative effect of these personnel shifts is a deliberate erosion of federal institutions. Legal challenges are still pending, but for now, the administration is pressing ahead.
 
(With inputs from the Associated Press)

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First Published: Jul 11 2025 | 10:52 AM IST

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