On February 18, the FDIC will reportedly undergo significant workforce reductions and terminate approximately 170 probationary employees as part of ongoing personnel cuts at the Corporation. Probationary employees, who may have been new to federal service or were recently promoted, were informed of their terminations through letters that cited the public interest as a reason — but reportedly cited no specific details. The FDIC reportedly offered these employees the option to resign and avoid having a termination on their employment records. This action followed the acceptance of deferred resignation buyouts by around 500 FDIC employees, representing about 8 percent of the Corporation’s workforce. Acting Chairman Travis Hill reportedly stated the FDIC “will be smaller.”

News agencies reported these workforce reductions came in the wake of several banks experiencing financial issues in 2023, which highlighted a shortage of bank examiners and an aging workforce at the FDIC. A report from the FDIC’s OIG warned of potential knowledge and leadership gaps due to impending retirements, with 38 percent of employees eligible for retirement by 2027.