Washington, D.C. – The Small Business Administration (SBA) is reportedly preparing to eliminate over 40% of its workforce as part of a sweeping restructuring effort, according to the Wall Street Journal. Citing sources familiar with the plan, the report states that the agency is aiming to reduce its staffing to pre-pandemic levels, which will involve cutting approximately 2,700 jobs.

The reduction is expected to primarily affect non-essential roles and will include provisions for voluntary resignations. The move is being framed as part of a broader reorganization aimed at streamlining operations within the agency, which saw significant staffing increases during the COVID-19 crisis to manage emergency loan and relief programs for small businesses.

This dramatic reduction aligns with the current administration’s policy of shrinking the size of the federal government. In recent months, President Donald Trump signed an executive order aimed at dissolving the Department of Education, marking a bold move to dismantle federal oversight in favor of state and local control. Additionally, reports have surfaced suggesting the Pentagon is considering slashing up to 60,000 civilian jobs as part of its own realignment efforts.

While the SBA has not officially confirmed the layoffs, the reported plan highlights the administration’s continued focus on reducing government spending and workforce sizes across agencies. If implemented, the cuts would represent one of the most significant rollbacks in the agency’s history, reshaping the way it supports America’s small business community going forward.

Observers note that the restructuring may face pushback from lawmakers and business advocates concerned about the impact on services. However, officials appear determined to align the agency with broader fiscal and administrative priorities set by the executive branch.