Staff reductions at the Federal Deposit Insurance Corp. may lead to a loss in institutional knowledge and hinder its ability to respond to crises, according to a report by the agency’s Office of the Inspector General.

The FDIC reduced staffing by 20% last year, from roughly 6,300 to 5,000, in part from the early resignation or retirement programs offered by the federal government at the direction of the Department of Government Efficiency.

As of Feb. 15, 797 staffers – 17% of the agency’s remaining staff – were eligible for retirement.

“These figures highlight the scale of organizational transformation at the FDIC and the continued need for succession planning,” the OIG wrote in a report released this month.

“While organizational transformation can provide opportunities for the FDIC to reshape its business processes, realize efficiencies, and promote employee growth, management should continue to monitor the impact of staffing changes,” the OIG wrote.

With further cuts expected, “[t]he FDIC must maintain a sustained focus on strategic workforce planning to ensure its continued effectiveness and mission fulfillment,” wrote the OIG.

Workplace culture shifts

The FDIC ramped up its focus on workplace culture following the emergence of concerns in 2023, which were made public in reporting by The Wall Street Journal.

The agency created two independent offices in November 2025, the Office of Professional Conduct and Office of Equal Employment Opportunity, reporting directly to the board of directors. The offices investigate misconduct and complaints of discrimination respectively.

The agency also revised its anti-harassment training, the OIG found, and centralized its harassment complaint process.

The changes were not immediate. An OIG report from August 2024 found the agency was slow to address allegations of sexual harassment.

FDIC Chair Travis Hill, then vice chair, said in 2024 that “holding those who commit misconduct accountable is perhaps the most important part of transforming the culture at the FDIC.”

Later that year, he called delays to address workplace culture at the agency “another example of the lack of leadership and accountability at the agency.”

The FDIC still has work to do, according to the OIG report. But it “continues in a positive direction with respect to improving workplace culture.”