The Securities and Exchange Commission (SEC) is facing a significant reduction in its workforce as approximately 500 employees have agreed to accept $50,000 buyout offers, according to sources familiar with the matter. The departures represent roughly 10% of the agency's 5,000-strong staff.

SEC Braces for Major Staff Reduction as Hundreds Accept Buyout Offers

The exodus is expected to significantly impact several critical areas within the agency. The Division of Enforcement, Office of Examinations, and Office of the General Counsel will experience some of the most substantial losses, according to individuals with direct knowledge who requested anonymity because the information isn't public.

The number of departures could increase further, as employees have until last Friday to accept the $50,000 incentive package. Under the voluntary separation agreement, eligible employees must have been on the SEC's payroll before January 24 and agree to leave through resignation, transfer, or immediate retirement. Those who return to the agency within five years must repay the full incentive amount.

New, from @nicola_m_white and me:

About 10% of the SEC’s 5000 person staff are planning to depart the agency.

The divisions of exams, enforcement and the general counsel’s office will see significant departures. More on the @TheTerminal pic.twitter.com/QrCx7kQgZS

— Lydia Beyoud (@ElleBeyoud) March 21, 2025

Broader Cost-Cutting Measures

The staff reductions come amid a larger cost-cutting initiative within the SEC. The agency plans to terminate leases for its Los Angeles and Philadelphia offices, while the General Services Administration has explored ending the Chicago office's lease despite potential financial penalties.

Regional offices handle significant portions of the SEC's examination and enforcement activities. The agency has also eliminated senior positions at regional offices, although incumbents aren't being forced out.

Several legal experts have criticized these cuts as contradictory to effective government operation. In a blog post last week, a group of Columbia Law School professors including John Coates and John Coffee Jr. wrote:

“The Trump administration may claim that all agencies should be reduced in size by a roughly similar margin, in effect sharing proportionate reductions. But this ignores one extraordinary fact about the SEC: It consistently has generated more in fees than in operating expenses.”

Trump and Musk Cut Costs

The staff reductions align with President Trump and Elon Musk's broader efforts to downsize the federal workforce, which they have characterized as bloated and inefficient. The White House required agencies to submit plans for a second wave of mass layoffs by March 13.

SEC Acting Chairman Mark Uyeda, a Republican, initiated these workforce reduction measures before the arrival of Trump's nominee for replacement, Paul Atkins, who is scheduled to testify before Congress next week.

According to Bloomberg and Reuters, an SEC spokesperson declined to comment on the departures.