The Trump administration moved on Wednesday to shrink a government agency tasked with identifying looming financial risks, notifying around 40 staff members they would be laid off, according to a person familiar with the changes.
The employees at the Office of Financial Research (OFR) were formally told on Wednesday they will lose their jobs as part of a broader reorganization of the agency that was created in the wake of the 2007-2009 global financial crisis, the source said.
The overhaul forms part of a broader push by the Trump administration to reduce government bureaucracy by slashing government jobs and cutting regulations.
Staff at the OFR, an independent bureau within the U.S. Treasury that analyzes market trends to spot financial risks, were told in January that jobs would be eliminated as the administration sought to cut the OFR’s budget by 25 percent to around $76 million, the person said.
Some staff have left voluntarily up until this point, this person said. They added that the OFR is also working with the Treasury to find new roles for other OFR employees.
“We are working to make OFR a more efficient organization with a stronger workforce and culture to better execute on the mission,” a spokesman for the Treasury said in an email statement.
“The plan to reshape the workforce was announced to OFR employees in January, and the headcount reduction is an important step toward streamlining operations and reducing costs,” he added.