The IRS and PwC are both scaling back their workforces this spring, moves that reflect how the accounting world is quietly adjusting to shifting priorities and budget realities. 

At the IRS, a new report from the Treasury Inspector General for Tax Administration (TIGTA) shows the agency has already reduced its staff by 11% since the start of the year. More than 11,000 employees either took a buyout or were let go during their probationary periods. Many of them were early-career workers, under 40 and often with less than a year on the job. The cuts span across departments, from taxpayer services to IT and are part of a broader reduction-in-force strategy that could bring the agency’s headcount down by as much as 40% by year-end. 

The big firms are in the same boat. Reuters reports that PwC accounted it’s laying off about 1,500 U.S. employees, or roughly 2% of its staff. In a statement, the firm said the layoffs came after several years of unusually low attrition. PwC emphasized that the decision was made carefully and with an eye toward long-term sustainability. 

As CPA Practice Advisor notes, the IRS is undergoing a significant restructuring, with the TIGTA—which provides independent oversight over the tax agency—outlining how staffing changes reflect shifting priorities and operational adjustments.