TLDR
- SEC offering eligible employees $50,000 to resign or retire by April 4
- Employees must apply by March 21 and have been on payroll before January 24
- Part of Trump administration’s DOGE initiative led by Elon Musk to cut federal workforce
- SEC must return to office full-time starting April 14
- SEC dropping lawsuits against crypto companies while also planning to terminate leases for Los Angeles and Philadelphia offices
The Securities and Exchange Commission (SEC) is offering eligible employees $50,000 to resign or retire by April 4, according to an email sent to staff.
The offer comes as part of the Trump administration’s efforts to trim the federal workforce through the Department of Government Efficiency (DOGE).
SEC Chief Operating Officer Ken Johnson sent the email on February 28 to all employees. The memo describes the program as a “voluntary separation incentive” or “voluntary early retirement program.”
Employees interested in the buyout must apply by March 21. To qualify, staff must have been on the agency’s payroll before January 24, 2025.
The incentive applies to employees who voluntarily leave through resignation, transfer to another agency, or retirement. Those accepting the buyout cannot return to the SEC within five years.
If former employees do return within that timeframe, they must repay the full $50,000 incentive. This condition ensures the workforce reduction remains permanent.
The SEC is not alone in offering such incentives. The Education Department has also offered some staff $25,000 to resign or retire.
The Education Department’s deadline was much tighter. Staff reportedly had until Monday at 11:59 p.m. to accept, with a final work day of March 31.
DOGE Initiative
These buyouts align with the broader goals of the DOGE initiative. The department, led by Elon Musk, aims to reduce what the administration calls a “bloated and wasteful” federal workforce.
The Trump administration has already removed more than 100,000 of the federal government’s 2.3 million civilian workers. These reductions have occurred through a combination of layoffs and buyouts across various agencies.
In addition to the buyout program, the SEC has mandated that all staff return to the office five days a week. This full-time in-office requirement begins April 14.
The agency is also facing other changes. The General Services Administration has decided to terminate the SEC’s leases for its Los Angeles and Philadelphia offices.
There are also plans to cancel the Chicago office lease. However, Johnson noted that the terms of that agreement do not allow for cancellation “without substantial financial penalties.”
Johnson clarified that these lease terminations are not related to any reorganization or reduction in SEC personnel. However, Reuters previously reported that the SEC plans to cut regional office director jobs.
Meanwhile, the SEC appears to be scaling back its crypto enforcement efforts. In early February, reports indicated the agency was starting to reduce its 50-staff crypto enforcement unit.
The SEC has also dismissed legal action against several crypto companies in recent weeks. These include Coinbase, Consensys, Robinhood, Gemini, Uniswap, and most recently, Kraken.
SEC Commissioner Hester Peirce has outlined the agency’s new approach to regulating crypto markets. This includes evaluating the security status of crypto assets.
The changes at the SEC come as the US labor market faces increased scrutiny. Key economic reports are due this week, including nonfarm employment data, initial jobless claims, and the February Jobs Report.
These reports serve as important economic indicators. The change in job numbers is closely linked to the overall health of the economy.
