T
he General Services Administration (GSA) is aiming to cut its governmentwide real estate portfolio by 50% and reduce spending and personnel accordingly. The Public Buildings Service, which serves as the federal government's landlord, has seen a significant headcount reduction, with approximately 725 employees taking advantage of the Office of Personnel Management's "deferred resignation" offer, representing a nearly 13% decrease in its workforce.
The Public Buildings Service currently employs around 5,600 people. The cuts do not include employees who were recently fired during their probationary period or those facing an upcoming reduction in force. Acting GSA Administrator Stephen Ehikian has informed staff that the first phase of employees who took the deferred resignation offer have been placed on administrative leave.
A former GSA employee expressed concerns that the Public Buildings Service is cutting its workforce faster than planned, stating that getting rid of people before buildings and projects would be more effective. The official noted that PBS accounts for about 40% of GSA's total workforce and that reducing federal buildings would significantly decrease the need for personnel.
GSA has terminated leases for at least six Social Security Administration field offices, with some serving rural populations and having no nearby SSA field offices. A source familiar with the real estate industry described this as an "unprecedented" move, questioning whether it will save GSA money and citing concerns about reduced access to public services.
A GSA spokesperson stated that Acting Administrator Ehikian's vision includes reducing deferred maintenance liabilities, supporting the return to office of federal employees, and leveraging private-government partnerships. The agency is reviewing options to optimize its footprint and building utilization, working with tenant agencies to assess space needs, and will share more information on specific savings and facilities as soon as possible.
The Department of Government Efficiency (DOGE) claims that eliminating nearly 100 leases across the U.S. has saved over $144 million, representing more than 2.3 million square feet of building space. However, a former GSA official questioned some of these reported savings, suggesting that DOGE is taking credit for efforts already underway by GSA under the Biden administration.
A union representing employees at the National Labor Relations Board expressed concern about confusion caused by DOGE's website listing an office in Buffalo, New York, as terminated, despite plans to relocate staff to smaller space within the same building. The NLRB regional director later refuted the lease cancellation, stating there was no intent to cancel either the current or future lease.
The former GSA official noted that miscommunications are becoming increasingly common due to agency leadership's control over formal communications, creating a "hearsay" environment where employees rely on unofficial information. This lack of clarity has led to confusion and uncertainty within the agency.
