Federal Reserve Reduces Staff For First Time In 13 Years

The US Federal Reserve is reducing its workforce by approximately 300 employees this year, marking a small but uncommon reduction in headcount for an organization that has consistently grown since 2010, with its influence in the economy and regulatory responsibilities expanding, Howard Schneider reported this for Reuters.

The staff cuts resulted from a combination of attrition, including retirements, and layoffs.

A spokesperson for the Fed stated that the staff reductions are primarily concentrated within the workforce of the US central bank's 12 regional reserve banks.

This reduction predominantly affects information technology positions, including some that are no longer required due to the widespread adoption of cloud-based computer software.

Additionally, it impacts roles related to the Fed's various payment processing systems, which are currently being consolidated.

The spokesperson, who preferred not to be named, explained that the staff cuts resulted from a combination of attrition, including retirements, and layoffs.

According to annual reports and financial documents prepared by the Fed each year, the total number of staff allocated to the entire system, encompassing regional banks, the Washington-based Board of Governors, and three smaller units, is projected to decrease by more than 500 positions from 2022 to 2023, declining from 24,428 to 23,895.

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