The U.S. Internal Revenue Service (IRS) is reportedly considering reducing its workforce by up to half, potentially laying off as many as 45,000 employees, a source familiar with the matter told AFP on Tuesday.

If implemented, the move would mark one of the most significant reductions in a federal agency under President Donald Trump’s administration.

When asked about reports of plans to halve the IRS workforce, the source confirmed that discussions were ongoing within the agency.

This potential downsizing follows last month’s layoff of approximately 7,000 probationary employees at the IRS, part of broader federal job cuts affecting multiple agencies.

Since returning to the White House in January, President Trump has launched an aggressive initiative to slash public spending and reduce the size of the federal bureaucracy—one of his key campaign promises.

As part of this effort, Trump appointed billionaire entrepreneur Elon Musk, a top campaign donor turned close adviser, to lead the newly established Department of Government Efficiency (DOGE). The department has already eliminated thousands of government jobs and restructured multiple federal agencies.

Among its first targets were divisions overseeing policies related to diversity and inclusion.

Additionally, Trump’s administration has dismantled the U.S. Agency for International Development (USAID), effectively ending American-funded humanitarian and international development projects worldwide.

Federal officials have yet to confirm the extent of the IRS layoffs or provide a timeline for potential job cuts.