IRS (US Internal Revenue Service): 20,000 jobs cut

IRS shed over 20,000 employees through buyouts, early retirements, and layoffs under DOGE pressure. Officials cited declining workloads and increased automation as justification. The connection to AI is moderate — while the company is investing in AI capabilities, the layoffs were attributed to broader restructuring alongside technology adoption. Of the 20,000 total positions affected, our methodology estimates that approximately 8,000 roles (40%) are attributable to AI-driven changes. This is part of a broader pattern in Government/Tax where companies are restructuring operations around AI capabilities while reducing headcount in functions susceptible to automation.