The U.S. Securities and Exchange Commission (SEC) experienced a significant reduction in staff, with nearly one in five employees departing by September last year. This decline occurred through normal attrition and the Trump administration’s campaign of job cuts, disproportionately affecting divisions overseeing investment managers and stock markets, according to a report from the Government Accountability Office (GAO). The SEC is funded through industry fees rather than taxpayer dollars. The agency is responsible for protecting investors, facilitating capital formation, and maintaining fair, orderly, and efficient markets.
The workforce erosion, driven by the White House’s demand for federal government-wide reductions, has stretched the SEC’s capacity as it navigates substantial changes in the business and regulatory landscapes. While President Trump and former advisor Elon Musk advocated for ‘large-scale’ cuts to curb alleged bureaucratic waste, critics suggest these cuts risk undermining the agency’s ability to effectively police markets and respond to crises.
According to official figures, the SEC’s staff decline has outpaced the broader federal government, which experienced a 12% reduction over a longer timeframe. Reuters reported last year that 600 employees, or 12% of the agency’s staff, participated in voluntary buyouts by last May. The GAO report indicated that by September, an additional 270 employees had departed outside these programs, resulting in an 18% decrease in the SEC’s headcount for the government’s 2025 fiscal year.
An SEC spokesperson stated that the agency has sufficient staffing and resources, and that Chairman Paul Atkins is working to ensure timely hiring where necessary. Michael Clements of the GAO noted that some SEC staff expressed concerns about increased workloads and knowledge loss due to the departures, but indicated that ‘targeted hiring’ could address these issues. He added that the commission is currently developing a staffing plan.
