The Department of Defense (DOD) reduced its civilian workforce by more than 78,000 employees in 2025, or about 10% – but did not consistently analyze the impacts of those reductions, according to a recent report from the Government Accountability Office (GAO).
GAO found that DOD has not adequately analyzed the effects of workforce reductions or established a process to assess lessons learned, which it said limits the department’s ability to strengthen strategic human capital management and improve future workforce decisions.
Civilian employees perform a broad range of duties that support the military’s mission and play an essential role in the department’s operations. Federal law requires the Secretary of Defense to conduct an analysis before reducing programmed civilian workforce levels, the report noted.
The 10 percent reduction in the civilian workforce is well above the department’s goal of a 5% to 8% percent cut, which was set to align with President Trump’s Department of Government Efficiency Workforce Optimization Initiative.
DOD took multiple actions to reduce the workforce in 2025
DOD components routinely develop program requirements and estimate needed resources through an annual process known as programming. Between FY 2023 and 2025, 22 of 40 DOD components programmed reductions to their civilian workforces in at least one fiscal year, GAO found.
Among 14 DOD components that GAO selected for detailed review, 11 conducted some analysis of workforce reduction impacts during fiscal years (FYs) 2023 through 2025 to inform decision-making. However, GAO found that some components did not consistently perform required analyses or maintain related documentation.
According to component officials, DOD had not issued guidance on how or when to conduct and document such analyses.
In addition to workforce cuts through the programming process, DOD implemented other workforce reduction efforts since January 2025, which included the Deferred Resignation Program (DRP). The DRP offered most full-time federal employees the option to voluntarily resign while continuing to receive full pay and benefits through Sept. 30, 2025.
According to the report, the department approved about 53,200 DRP applications and hired approximately 59,500 fewer civilian employees from January through December 2025 than in recent years because of a hiring freeze.
Officials reported conducting some analyses related to the 2025 reductions but cited challenges in evaluating their effects. They identified preliminary benefits, including organizational optimization, as well as challenges such as strained workforce capacity.
GAO’s review of the department’s FY 2026 budget request identified more planned civilian workforce reductions.
GAO recommended that DOD develop and implement a plan to collect and share lessons learned from workforce reduction efforts carried out outside the programming process since January 2025, including deferred resignation programs and the hiring freeze. DOD concurred with the recommendation.
Under the Trump administration, the DOD was rebranded as the Department of War.