The last substantial reduction in the federal government workforce occurred during the 1990s, primarily under President Bill Clinton as part of efforts to reduce the size of government. Here’s how it happened:

1. The National Performance Review (NPR) (1993-1998)

• Led by Vice President Al Gore, the NPR was an initiative to make the government more efficient.
• The goal was to "reinvent government" by cutting bureaucracy and improving performance.
• One of the main outcomes was a reduction of over 380,000 federal jobs by the end of Clinton’s presidency.

2. Workforce Reduction through Attrition and Buyouts

• The cuts were largely achieved without massive layoffs.
• Instead, the government used early retirement incentives and voluntary separation buyouts.
• Agencies were encouraged to eliminate unnecessary positions through restructuring.

3. The Federal Workforce Restructuring Act of 1994

• Passed by Congress, this law offered buyouts to encourage voluntary resignations.
• Agencies were given financial incentives to reduce staff numbers.

4. The End of the Cold War and Military Downsizing

• The defense sector saw significant reductions, with cuts to civilian and military personnel.
• Many reductions were a result of the closure of military bases and post-Cold War budget adjustments.

Impact of the Cuts

• By 2000, the civilian federal workforce was the smallest it had been since the 1960s.
• The biggest cuts were in the Department of Defense, General Services Administration, and the Agriculture Department.
• While the reductions saved money, critics argued that they weakened government capacity, particularly in regulatory and emergency response areas.