Published Date: 22.03.2025 08:06 / Politics

SBA to Cut 43% of Staff

SBA to Cut 43% of Staff

The United States Small Business Administration (SBA) unveiled a sweeping reorganization plan on Friday, announcing that it will cut 43% of its workforce. The move, which eliminates approximately 1,727 jobs, is part of an effort to revert to pre-pandemic staffing levels and align the agency more closely with President Donald Trump’s economic policies.

According to the SBA’s official records, the agency currently employs 4,019 people. The workforce reduction will focus on eliminating non-essential roles, trimming down a structure that expanded significantly during the COVID-19 pandemic to accommodate emergency business relief efforts.

SBA Administrator Kelly Loeffler publicly criticized the agency’s previous trajectory, arguing that it had shifted away from its original mission of supporting small businesses. “We moved from serving small businesses to serving a political agenda,” Loeffler said, emphasizing the need to restore the agency’s core focus on empowering entrepreneurs.

The restructuring confirms earlier reports about a government-wide push to scale back federal agencies, a hallmark of Trump’s approach to governance. The White House has previously called for reductions in several departments, and this latest SBA announcement adds momentum to that initiative.

The agency’s plan includes provisions for both involuntary layoffs and voluntary separations, in an attempt to minimize disruption while executing the cuts. Officials said the reorganization will be phased in over the coming months to ensure continuity in essential services for small businesses nationwide.

Critics warn that the move could hinder the SBA’s ability to respond to future crises or provide robust support to American entrepreneurs. However, supporters argue that the agency had become bloated and inefficient, and that the cuts represent a long-overdue correction.

This dramatic reduction underscores a shift in Washington’s attitude toward federal spending and workforce management. As Trump’s administration continues to emphasize smaller government and fiscal restraint, the SBA’s restructuring stands as a bold example of those priorities in action.