The Securities and Exchange Commission is set to lose 10% of its workforce, as nearly 500 employees take a $50,000 buyout. These SEC staff cuts come as part of a wider federal downsizing effort led by the Trump-Musk administration.
The voluntary separation program was open to staff hired before January 24. Those who accepted agreed to leave through retirement, resignation, or transfer. If they return to the agency within five years, the full incentive must be paid back.
Enforcement and Legal Divisions Affected
The most affected areas include the Enforcement Division, the Office of Examinations, and the General Counsel’s Office. Insiders say these SEC staff cuts will hit critical regulatory functions, with more exits possible as the deadline just passed.
The agency, which has around 5,000 employees, may see further losses depending on final tallies.
Office Closures Part of Broader Cost Cuts
The SEC staff cuts are tied to a larger push to reduce costs. Leases for the Los Angeles and Philadelphia offices will be ended. The General Services Administration is reviewing whether to shut down the Chicago location despite possible penalties.
Senior roles at some regional offices have also been eliminated, though no current employees are being removed from those positions.
Legal Experts Question the Move
Several legal scholars have pushed back, pointing out the SEC often generates more revenue than it spends. Professors John Coates and John Coffee Jr. from Columbia Law School called the downsizing shortsighted.
The Trump-Musk administration has ordered agencies to prepare for more layoffs by March 13. Acting SEC Chair Mark Uyeda started the cuts ahead of Trump’s nominee, Paul Atkins, who will soon appear before Congress.
An SEC spokesperson declined to comment on the ongoing staff reductions.
