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U.S. Department of Education offers employees $25K buyout amid looming layoffs [Latest 2022]

Planetic Net by Planetic Net
March 3, 2025
in Educator, Employment, Human capital, Layoff, Severance package, Student loan
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Overview:

Jacqueline Clay, the Department’s Chief Human Capital Officer, announced the incentive with employees having until Monday to accept the offer.

According to a department-wide email obtained by The Educator’s Room, the Education Department is offering most of its employees a buyout of up to $25,000 to voluntarily resign or retire ahead of what officials describe as a “very significant” workforce reduction.

In a memo sent Friday afternoon, Jacqueline Clay, the Department’s Chief Human Capital Officer, announced the one-time Voluntary Separation Incentive Payment (VSIP) to all eligible staffers. Employees have until Monday at 11:59 p.m. to accept the offer, with their resignations taking effect on March 31.

Eligibility and Restrictions

Not all employees who opt in will receive the entire $25,000 payout. Clay’s memo states the buyout amount will be “the equivalent of severance pay or $25,000, whichever is less.” Employees were advised to review their benefit statements to estimate their potential severance package.

Additional eligibility requirements include:

  • A minimum of three consecutive years of federal employment.
  • No receipt of student loan repayment benefits in the past three years.
  • No recent relocation, recruitment, or retention bonuses, which may disqualify some staff.

Federal Workforce Shake-Up

The buyout signals ongoing upheaval at the Education Department, which has seen significant turnover since President Donald Trump took office in January. From widespread executive orders targeting DEI and transgender students, his administration has warned of widespread layoffs across federal agencies, with the president recently reiterating his desire to “close the Education Department immediately.”

This development comes amid other federal cost-cutting measures and restructuring efforts, fueling uncertainty about the agency’s future role in the nation’s education system.

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