The Government Accountability Office (GAO) is warning that deep workforce reductions at the Office of Personnel Management (OPM) risk worsening longstanding skills gaps and weakening the agency’s ability to manage the federal government’s civilian workforce.
In a new report released July 20, GAO found that OPM’s headcount fell by 1,052 employees – or 35% – between Dec. 31, 2024, and March 31, 2026, as the agency implemented workforce reductions directed by the Trump administration.
“These actions have reduced institutional knowledge and operational capacity at the agency,” the report says.
According to the report, 59% of employees who left OPM during the period did so through the Trump administration’s deferred resignation program, while another 10% departed through reductions in force.
Employees age 60 and older were particularly affected, with that segment of the workforce declining by 49%. GAO also found that 41% of employees under age 30 left the agency during the period.
The report found that experienced employees accounted for much of OPM’s workforce losses. Fifty-seven percent of separating employees had at least 11 years of federal service, including 18% with more than 31 years of service, “representing a significant loss of institutional knowledge,” according to GAO.
The watchdog said the workforce reductions come as OPM has yet to implement a February 2023 recommendation to develop an action plan to address agency skills gaps. According to the report, OPM officials said they have instead prioritized workforce changes aligned with the agency’s fiscal year 2026-2030 strategic plan.
GAO also pointed to a November 2025 report from the OPM Office of Inspector General that identified workforce reductions as one of the agency’s top management challenges for 2026 because of resulting operational capacity gaps.
While staffing declined across much of the agency, GAO noted that OPM’s fiscal year 2027 budget proposal calls for expanded use of artificial intelligence (AI) and IT modernization to help offset workforce reductions.
“For example, the agency proposed exploring opportunities to leverage AI to enhance financial reporting and internal customer experience in the Office of the Chief Financial Officer,” the report says.
GAO also reported that OPM eliminated 10 offices between fiscal years 2024 and 2026 while shifting responsibilities among remaining organizations.
The report concludes that GAO could not fully assess the impact of OPM’s reorganization because the agency declined to provide requested documentation, respond to written questions, or meet with investigators beyond commenting on a draft report.
“As a result, in this report, GAO is unable to provide complete information on what changes OPM made, its rationale, the expected costs and benefits, and any effect on OPM’s ability to fulfil its mission,” the report says.