HHS lays off 10,000 workers after Supreme Court lifts freeze

Thousands of employees at the U.S. Department of Health and Human Services (HHS) have officially lost their jobs, following a Supreme Court decision that cleared the way for workforce reductions. The agency sent an email on Monday confirming the terminations, one week after the high court’s July 8 ruling ended a series of legal challenges. The decision gave federal officials the authority to move forward with staff cuts that had been on hold for months.

Mass layoffs finalized after court clears the way

CNN obtained the notice thanking the employees for serving the American people.

“You are hereby notified that you are officially separated from HHS at the close of business on July 14, 2025,” it stated.

Inside the HHS restructuring plan

In March, the HHS announced a major restructuring tied to President Donald Trump’s executive order on federal workforce cuts. The plan aims to save $1.8 billion a year by reducing the HHS workforce by about 10,000 full-time employees.

In the announcement, HHS said, combined with early retirements and other exit programs, the department’s total employee count will shrink from 82,000 to 62,000. The restructuring also consolidates 28 divisions into 15, creates a new agency called the Administration for a Healthy America and cuts regional offices from 10 to 5. 

On April 1, about 10,000 employees received formal termination notices with an official departure date of June 2. At the same time, another 10,000 workers accepted voluntary departure packages that included financial incentives.

Court halts, then Supreme Court overturns

In May, a federal judge in San Francisco issued a preliminary injunction preventing HHS and other federal agencies from moving forward with their reduction plans. The order allowed employees to remain on the job until the Supreme Court reversed the injunction earlier this month.

It is not the only case HHS is fighting in court. On July 1, another injunction was granted by federal judge Melissa DuBose. Her order temporarily protects employees across several HHS agencies, including the Food and Drug Administration and the Centers for Disease Control and Prevention.

Meanwhile, a class action lawsuit has been filed on behalf of employees who allege HHS used inaccurate data when making the termination decisions announced in April. The case argues that the department relied on flawed or outdated records to determine which positions to eliminate.

Under federal law, government employees have the right to challenge personnel actions that are based on incorrect information. This protection falls under the Privacy Act of 1974, which gives individuals the right to access and request correction of records held about them by federal agencies. 

Other federal agencies begin cuts too

In the past week, both the State Department and the Education Department moved forward with laying off thousands of employees as part of broader federal workforce reductions.