The United States’ regulatory body that governs cryptocurrencies, the Securities and Exchange Commission (SEC), is undergoing a significant workforce reduction. In a move that reflects broader government efficiency efforts, the SEC has requested its employees to consider resigning or taking early retirement in exchange for a $50,000 payout.
Analysts have suggested that this downsizing aligns with initiatives from the Trump administration and the Department of Government Efficiency (DOGE) aimed at trimming down the government workforce to cut spending.
SEC Offers Payout
Reports indicate that the SEC has become the latest casualty of President Donald Trump’s government-wide campaign to reduce the budget for federal agencies. Bloomberg has noted that the agency, which regulates digital assets in the U.S., is now managing a scaledown as it offers long-term employees a payout to encourage their resignation or early retirement.
This impending wave of layoffs at the SEC may just be one of the many steps taken by the Elon Musk-led efficiency department as part of Trump’s promise to slash government expenditures by $2 trillion.
BREAKING: The SEC is offering employees a $50,000 incentive to resign or retire by April 4th, per Bloomberg. pic.twitter.com/jx0aJD3u4x
— The Kobeissi Letter (@KobeissiLetter) March 3, 2025
Musk stated in a recent interview, “We’ll aim for $2 trillion, which I believe is the best-case scenario. But you need to allow for some margin. If we target $2 trillion, I think there’s a strong chance we can achieve $1 trillion in spending cuts.”
‘Voluntary Early Retirement’ Program
According to an internal memo obtained by Bloomberg, the SEC is prepared to offer a $50,000 incentive for employees who participate in the agency’s “voluntary early retirement” program.
SEC Chief Operating Officer Ken Johnson explained that this opportunity is available to permanent employees who were on the payroll before January 24, 2025. The memo stated that employees must decide by March 21, 2025, and voluntary separation will take effect starting April 4, 2025.
The internal memo specified that eligible employees have the option to resign, transfer to another agency, or retire voluntarily.
However, it is important to note that employees who accept this “voluntary separation incentive” will need to repay the payout in full if they choose to return to the SEC within five years.
Relocating Office
Furthermore, reports suggest that the internal memo encouraged SER employees to consider relocating from Washington D.C. to areas identified as “less costly” as part of the government’s strategy to save funds. The SEC indicated that the cost of the payout would be mitigated by the savings resulting from a reduced workforce.
According to DOGE, the federal government workforce has already been reduced by over 100,000 workers through various buyout and layoff initiatives.
Featured image from Getty Images, chart from TradingView
