The Internal Revenue Service is set to lay off approximately 6,000 employees, eliminating 6% of its workforce during the peak of tax season, a person familiar with the matter said. The cuts are part of Donald Trump's downsizing initiative, led by Elon Musk, which has targeted government agencies across sectors. Speaking at the Conservative Political Action Conference, Musk held up a chainsaw handed to him by Argentine President Javier Milei, calling it the "chainsaw for bureaucracy." Labor unions sued to stop the firings, but a federal judge allowed them to proceed. The layoffs primarily affect workers hired during Joe Biden's administration, which sought to enhance tax enforcement on the wealthy.
