Defense Secretary Pete Hegseth signed a memorandum yesterday directing the realignment of the Defense Department's civilian workforce.
The memo, "Initiating the Workforce Acceleration and Recapitalization Initiative," — which is addressed to senior Pentagon leadership, combatant commanders, and defense agency and DOD field activity directors — states that DOD will "realign the size of our civilian workforce and strategically restructure it to supercharge our American warfighters consistent with [Hegseth's] interim National Defense Strategy guidance."
The memo states that DOD seeks to reduce duplicative efforts and reject excessive bureaucracy through an honest analysis of the workforce. Additionally, it states automation through technological solutions will be sought out, particularly at the headquarters level.
"The net effect will be a reduction in the number of civilian full-time equivalent positions and increased resources in the areas where we need them most," the memo reads.
It then lists two courses of action to implement Hegseth's intent.
First, Hegseth calls on the undersecretary of defense for personnel and readiness to immediately implement DOD's Deferred Resignation Program and to also offer voluntary early retirement for all eligible DOD civilian employees.
The DRP, first implemented by the Office of Personnel Management Jan. 28, 2025, offered most full-time federal employees — including most of the nearly 900,000 DOD civilians — the limited opportunity to resign with full pay and benefits until Sept. 30, 2025. OPM also offered early retirement for eligible personnel.
With this newly signed memo, the DRP and the early retirement program are being reopened for nearly all DOD civilians, only this time under the authority of the Defense Department rather than OPM.
"Exemptions should be rare," Hegseth said via the memo. "My intent is to maximize participation so that we can minimize the number of involuntary actions that may be required to achieve the strategic objectives."
Second, Hegseth directs senior DOD leadership to provide "a proposed future-state organizational chart" of those leaders' respective departments. A summary of all those charts — which should include functional areas and consolidated management hierarchies with positional titles and counts clearly depicted — is due from USD(P&R) to the defense secretary no later than April 11, 2025.
While the memo does not specify a targeted percentage for layoffs at DOD, it mentions that important changes are required "to put the department on ready footing to deter our enemies and fight for peace."
To accomplish that goal, it states that the intent of the realignment is to "execute a top-to-bottom methodology that results in a force structure that is lean, mean and prepared to win."