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New DOGE CIO looks to reduce Labor IT office by 30%, agency source says

The office is hoping that deferred resignations and RIFs will do the trick.
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The U.S. Department of Labor building is seen behind a sign marking the location of the agency's headquarters on March 18, 2025, in Washington, D.C. (Photo by J. David Ake/Getty Images)

The Labor Department’s new chief information officer is looking to reduce staff in the Office of the CIO by about 30%, according to a source within the agency.

Hundreds of people currently work in Labor’s CIO office, but leadership is hoping many workers will voluntarily leave the team.  

Thomas Shedd, who was appointed to Labor’s CIO role last month, is optimistic that the goal will be achieved through the federal government’s deferred resignation programs and reduction-in-force efforts, the source said. 

Going forward, Labor’s Office of the CIO plans to focus on systems used to disburse benefits, as well as programs required by law that need business systems and software to work, according to documents viewed by FedScoop. 

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There will also be an emphasis on efficiency and consolidating systems while providing value, the documents said. The department told employees that they’re not “tracking” staff, despite media reports, and that the agency is only interested in measuring results.

Still, through the planned reduction, several offices may see smaller staffs, including the Client Engagement and Program Management, the Technology, Innovation, and Engineering, and the Administration, Business Manager, and Governance directorates, the documents said. The Digital Transformation Directorate is also expected to be impacted. 

Shedd is wearing multiple hats within the Trump administration, simultaneously serving in a role with the General Services Administration’s Technology Transformation Services.

Shedd had previously been active in efforts to close down some of GSA’s tech-focused programs, including 18F, a digital services team that assisted with projects across the federal government. 

Rebecca Heilweil

Written by Rebecca Heilweil

Rebecca Heilweil is an investigative reporter for FedScoop. She writes about the intersection of government, tech policy, and emerging technologies. Previously she was a reporter at Vox's tech site, Recode. She’s also written for Slate, Wired, the Wall Street Journal, and other publications. You can reach her at rebecca.heilweil@fedscoop.com. Message her if you’d like to chat on Signal.

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