The US Department of Health and Human Services (HHS) has announced a sweeping reorganization that will cut around 10,000 full-time roles, aiming to save taxpayers $1.8 billion annually.
The restructuring, part of President Trump’s “Department of Government Efficiency” initiative, will reduce the department’s total workforce from 82,000 to 62,000 employees.
This move marks one of the largest public sector workforce reductions in recent memory.
For job seekers, especially those in public health, administration, and support services, the message is clear: adaptability and upskilling are more crucial than ever.
HHS Secretary Robert F. Kennedy, Jr, said:
“We aren’t just reducing bureaucratic sprawl. We’re realigning the organization with its core mission.”
Why It’s Happening: Efficiency and Chronic Disease Focus
The restructuring has four core goals:
- Cut federal costs by shrinking staff and eliminating redundant programs.
- Consolidate 28 divisions into 15 to streamline services.
- Refocus on preventive health, tackling chronic illness by emphasizing clean water, nutrition, and environmental health.
- Maintain essential services like Medicare and Medicaid without disruption.
Key units—including Human Resources, IT, and Procurement—will be centralized.
Regional offices will be halved from 10 to 5.
Major Department Changes to Watch
Here are the most notable structural changes:
Creation of the Administration for a Healthy America (AHA)
A new mega-agency, the AHA will combine several existing health agencies:
- Office of the Assistant Secretary for Health (OASH)
- Health Resources and Services Administration (HRSA)
- Substance Abuse and Mental Health Services Administration (SAMHSA)
- Agency for Toxic Substances and Disease Registry (ATSDR)
- National Institute for Occupational Safety and Health (NIOSH)
Focus areas include:
- Primary Care
- Maternal and Child Health
- Mental Health
- HIV/AIDS
- Environmental Health
- Workforce Development
This consolidation aims to break down silos and improve coordination in health services, especially for underserved communities.
Strengthening the Centers for Disease Control and Prevention (CDC)
The Administration for Strategic Preparedness and Response (ASPR)—which handles public health emergencies—will now report directly to the CDC. This change is designed to streamline disaster response operations and reinforce the CDC’s role as the primary public health agency.
A New Assistant Secretary for Enforcement
A new senior official will oversee:
- The Departmental Appeals Board (DAB)
- Office of Medicare Hearings and Appeals (OMHA)
- Office for Civil Rights (OCR)
This centralization is designed to tighten enforcement and crack down on fraud, waste, and abuse in federal health programs.
Merging Policy and Research Arms
Two key agencies—the Assistant Secretary for Planning and Evaluation (ASPE) and the Agency for Healthcare Research and Quality (AHRQ)—will merge into a single Office of Strategy. The goal? Make sure research directly informs policy, leading to more data-driven decisions across HHS programs.
Redistribution of Services for Older Adults
Support programs from the Administration for Community Living (ACL) will be absorbed into other HHS bodies, including the Centers for Medicare and Medicaid Services (CMS). The agency claims no impact on Medicare or Medicaid services.
What This Means for the US Workforce
This isn’t just a bureaucratic reshuffle. For job seekers and employers in the healthcare, policy, and civil service sectors, here’s what to watch:
For Job Seekers
- Federal hiring may slow across some health-focused departments.
- Positions in policy research, enforcement, IT, and public health may consolidate or shift location.
- New roles may emerge under centralized agencies like AHA or the Office of Strategy.
For Employers
- Contractors and consulting firms serving HHS may see contract changes or reductions.
- Private-sector demand for displaced federal workers could rise—especially those with experience in public health or regulatory compliance.
- Health companies should monitor how the focus on chronic disease prevention affects funding and partnerships.
Key Takeaways: A Leaner HHS with a New Mission
The Department of Health and Human Services is changing dramatically—fewer jobs, fewer divisions, but sharper focus.
For those in the health, government, or nonprofit sectors, it’s time to:
- Stay alert for new federal openings in consolidated agencies.
- Consider upskilling in areas like health policy, data analysis, or enforcement.
- Watch for ripple effects in local government and public health services.
Whether you’re seeking a job or hiring in the sector, the federal health workforce is entering a new era of lean operations and mission realignment.
