OPM shakeups: GAO warns office cuts and capacity loss raise federal HR risk

The Government Accountability Office (GAO) released a July 20, 2026 review warning that major staffing cuts and office eliminations and reductions at the Office of Personnel Management (OPM) have reduced institutional knowledge and operational capacity. GAO ties that decline to a higher risk of worsening skills gaps in the federal HR system—while also saying it could not fully evaluate the rationale, costs, benefits, or mission impacts because OPM did not provide requested documentation.

What GAO found inside OPM since late 2024

GAO-26-108916, “Recent Federal Workforce Changes at OPM,” says OPM headcount fell by 1,052 people between December 31, 2024 and March 31, 2026—a 35% drop. GAO also reports that OPM eliminated 10 offices, citing reductions across responsibilities that support federal agencies’ human capital operations.

GAO adds that the separations were not evenly distributed across experience levels. It reports that 57% of employees who left OPM between December 2024 and March 2026 had 11 or more years of service, signaling a loss of institutional knowledge. GAO also says 59% of separations during the same period occurred through a deferred resignation program, and 10% occurred through a reduction in force.

GAO describes additional “who left” patterns that may affect continuity. The number of employees aged 60 or older decreased by 49% from December 2024 to March 2026. Among separations of employees under age 30, GAO reports that 60% were within their probationary period; for all separating employees, GAO reports only 23% were within probation.

GAO’s review also points to reductions in OPM-reported full-time equivalents (FTE) across several offices from FYs 2024 to 2026, including large percentage declines in Human Resources Solutions and the Office of the Chief Information Officer, along with notable shrinkage in Retirement Services and other HR-support units.

GAO’s risk framing: operational capacity and skills gaps

GAO frames the concern as operational capacity—specifically, whether OPM can sustain mission-critical HR functions as experienced staff depart and responsibilities shift. GAO notes that skills gaps have been a long-standing challenge and have been on GAO’s High-Risk List. It also says its earlier recommendations for OPM to address skills gaps were not implemented, with OPM prioritizing workforce changes aligned to its FY 2026–2030 strategic plan.

GAO further points to the OPM Office of the Inspector General identifying OPM’s workforce reduction as a top management challenge for 2026, citing immediate gaps in operational capacity.

Where GAO says it hit a wall

Although GAO analyzed publicly available OPM workforce data, GAO says it requested additional documentation from OPM. That request covered changes to offices or programs since 2025, the rationale behind office closures or consolidations, and processes for strategic workforce planning. GAO reports that, aside from comments on a preliminary draft, OPM did not provide the requested documents or information and did not agree to meet with GAO or respond to written questions.

As a result, GAO says it is “unable to provide complete information” on what changes OPM made, OPM’s rationale, the expected costs and benefits, and any effect on OPM’s ability to fulfil its mission.

OPM’s public response: leaner government and “Federal HR 2.0”

OPM’s own release presents a different emphasis. In a news release, OPM says the administration’s approach is about creating a leaner and more accountable federal workforce, citing a hiring freeze focused on mission-critical roles and emphasizing voluntary programs and attrition. OPM also frames HR modernization as part of its broader strategy, including technology and process changes and consolidation of HR IT systems under an effort it describes as “Federal HR 2.0.”

GAO’s report does not accept OPM messaging as a substitute for evidence; it instead highlights the risk that reduced capacity and loss of institutional knowledge could make skills gaps harder to address.

What the public can check next

For an official, datalike starting point, readers can review OPM’s Federal Workforce Data (FWD) “Workforce Changes” dashboard. OPM describes it as updated monthly, with “data as of May 2026.” The dashboard explains workforce changes using accessions and separations recorded through federal personnel actions, including items tied to programs such as the Deferred Resignation Program introduced in 2025.

What to watch from here: whether OPM provides the documentation GAO requested, whether operational-capacity concerns are addressed, and whether workforce-outcome reporting becomes detailed enough for independent oversight to assess whether reforms improved HR service continuity across federal agencies.

Sources

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