After deep staffing cuts, agencies seek mix of hiring and AI tools to rebuild capacity
In the wake of significant staffing reductions, federal agencies are exploring a combination of hiring initiatives and artificial intelligence (AI) tools to restore their operational capacity. The General Services Administration (GSA), which oversees government-wide real estate, IT, and contracting services, has experienced a dramatic workforce reduction, losing nearly 40% of its employees since fiscal year 2024. This trend has prompted agency leaders to rethink their strategies for maintaining productivity in a leaner workforce.
The Impact of Workforce Cuts
According to the Office of Personnel Management, over 386,000 federal employees have departed from government roles under the Trump administration, resulting from a mix of firings, layoffs, retirements, and early separation incentives. The net effect of these changes has been a loss of more than 264,000 positions within the federal workforce.
GSA’s Approach to AI Integration
At a recent industry conference, GSA’s Chief Financial Officer, Nimisha Agarwal, discussed the agency’s strategy to leverage AI tools to enhance workforce efficiency. Agarwal emphasized that automating repetitive tasks can free up time for employees to engage in more strategic activities. “When you start automating some of those repetitive processes, you actually make time for us to perform the kind of work that we can actually do better,” she stated.
Challenges in Hiring
Despite the GSA’s initiatives to recruit new talent, Agarwal noted that hiring cannot be the sole strategy for rebuilding the workforce. “Hiring is not the fastest in the federal government, so hiring cannot be the only mitigation strategy that we depend on,” she explained. The lengthy onboarding process means that even when new employees are hired, it may take time before they can fully contribute to the agency’s mission.
AI Adoption in Other Agencies
The Environmental Protection Agency (EPA) has also felt the impact of workforce reductions, losing nearly a quarter of its employees during the same period. To address these challenges, the EPA is focusing on AI tools to enhance employee productivity. Gregg Treml, the agency’s deputy chief financial officer, highlighted the importance of using technology to allow employees to concentrate on core responsibilities. “Regardless, there’s never going to be enough time. There’s never going to be enough people,” Treml remarked.
Upskilling and Workforce Development
Both the GSA and EPA are committed to upskilling their current employees while also hiring new staff to fill gaps left by retirements. Treml noted that the EPA is actively seeking to create a culture that can adapt to changes, whether they arise from new administrations or societal shifts. “We want to build and create that culture that can adapt to whatever is thrown at us,” he stated.
Reorganization Efforts
The EPA has undertaken significant organizational changes, merging its Chief Financial Officer office with other administrative offices to form the Office of Finance and Administration. This restructuring aims to improve payroll forecasting and enhance operational efficiency. Treml explained that effective collaboration between human resources and budget officers is crucial for accurate financial planning.
GSA’s Centralization of Operations
Similarly, the GSA is implementing reorganization plans across its operations, including the establishment of an Office of Digital Finance. This new office is responsible for centralizing process optimization efforts throughout the agency, further supporting the goal of maximizing productivity with a reduced workforce.
Conclusion
As federal agencies navigate the challenges posed by significant staffing cuts, the integration of AI tools and a focus on strategic hiring and employee development are becoming essential components of their recovery strategies. By leveraging technology and fostering a culture of adaptability, agencies like the GSA and EPA aim to enhance their operational capabilities and effectively serve the public.
Frequently Asked Questions
The GSA has lost nearly 40% of its total workforce since fiscal year 2024.
Over 386,000 federal employees have departed from government roles, resulting in a net decrease of more than 264,000 positions.
The EPA is focusing on AI tools to enhance productivity and is committed to upskilling its workforce while hiring new employees to fill gaps.
Note: The information presented in this article is based on data and statements available as of March 2026 and may be subject to change.
