Federal Reserve plans to cut banking supervision staff by 30% - report

[Department of Treasury]
Douglas Rissing

The Federal Reserve plans to reduce its banking supervision staff by about 30% by the end of this year, according to a _Wall Street Journal_ report that cites an internal memo.

Vice Chair for Supervision Michelle Bowman announced a reorganization of the supervision and regulation division to shrink the unit from nearly 500 authorized positions to around 350 employees.

Bowman told staff she intends for the division to operate with fewer management layers, according to the report [https://www.wsj.com/livecoverage/stock-market-today-dow-sp-500-nasdaq-10-30-2025/card/a-different-kind-of-fed-cut-feLmdb05ojaNyZy9s30v]. “The goal is to accomplish this reduction as much as possible through natural attrition, retirements, and by offering a voluntary separation incentive to all S&R division employees, with details to come in the following weeks,” the memo read.

This move aligns with a broader Federal Reserve workforce reduction plan of around 10% over the next few years, which is also in line with the Trump administration's push to reduce regulatory burdens and federal staff levels.

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