SEC Reportedly Cuts 15% Staff, 'Targeted' Restructuring Expected As Trump's Federal Layoffs Bite

The U.S. Securities and Exchange Commission (SEC) is bending the knee to President Donald Trump's government downsizing strategy as promoted by tech titan Elon Musk, as the financial regulator has reportedly laid off 15% of its workforce.

New SEC Chair Paul Atkins informed employees during a meeting billed as a "town hall" Tuesday that the agency's workforce has been slashed by 15% across various offices and divisions, Reuters reported, citing sources familiar with the matter.

More Layoffs to Come, and Contract Reviews

The sources further revealed that Atkins said he expects a "targeted" reorganization will be conducted even as the financial regulator already lost over 600 staff members through the Department of Government Efficiency's (DOGE) resignation offers.

Four of the sources said Atkins has also informed staffers of a review of the SEC's contracts starting Wednesday. Among those contracts for business services that will particularly be scrutinized is information technology.

The sources said Atkins did not rule out the possibility of further staffing layoffs and he did not mention Musk's DOGE, which has been at the agency since March, even before Atkins was officially sworn in last month.

The new SEC chief reportedly did not take any questions and three sources said the other commissioners have now been assigned to perform specific duties.

An SEC spokesperson said Atkins informed employees Tuesday that the federal agency will return to its core, which is "protecting investors; furthering capital formation; and safeguarding fair, orderly and efficient markets."

Layoffs Come at Crucial Time for Atkins

The reported workforce cuts came as Atkins attempts to flip the script that his predecessor, Gary Gensler, established during his tenure.

Atkins is also under pressure to pay attention to demands from the cryptocurrency industry to provide clear rules of the road and more regulatory clarity.

Furthermore, his leadership at the SEC comes amid increasing concerns over the Trump administration's federal downsizing strategy that has seen at least 121,000 federal employees laid off or targeted for layoffs in Trump's first 100 days.

The figures don't even include employees who accepted Trump and Musk's buyout offers and those placed on administrative leave since the sweeping downsizing kicked off.

Trump has insisted that many federal agencies were the home of "waste" and many staffers were not doing anything to prove their roles mattered. There have been concerns Trump was on a power-tripping spree following the USAID's effective shutdown and his continuing efforts to trim down federal workforces.