Major Job Cuts at CMS as RFK Jr. Restructures U.S. Health Department

An aerial view of the Centers for Medicare & Medicaid Services (CMS) building on March 19, 2025, in Woodlawn, Maryland, symbolizes more than just federal oversight—it now marks a pivotal moment of transition, uncertainty, and concern within one of the nation’s most vital healthcare agencies.

CMS Faces Cuts Under Kennedy’s HHS Restructuring Plan

The Centers for Medicare & Medicaid Services has experienced job cuts as part of a broader plan initiated by Robert F. Kennedy Jr. to restructure the Department of Health and Human Services (HHS). These changes were communicated during a virtual all-hands meeting held on Friday, led by CMS Acting Administrator Stephanie Carlton.

The internal meeting was the agency’s first since HHS employees began receiving notifications earlier in the week about job losses. Carlton confirmed that several specific CMS offices were impacted under this sweeping reorganization, even as she emphasized efforts to minimize the impact.

Scale of the Restructuring

Kennedy’s plan includes the elimination of 10,000 jobs across HHS. While CMS accounts for just 300 of those positions, the effects remain significant. CMS plays a critical role in administering Medicare and Medicaid programs for over 160 million Americans. Despite reassurances from the Trump administration that the changes would not affect Medicare services, concern remains high across the agency.

Kennedy acknowledged the possibility of reinstating some personnel and programs, admitting that mistakes are inevitable. However, Carlton did not confirm any plans for reinstatement within CMS, noting instead that the “painful part” of the cuts appeared to be over.

Offices Impacted by the Cuts

Office of Minority Health

Among the most notable cuts were those within the CMS Office of Minority Health. This office was established under the Affordable Care Act and plays a crucial role in addressing health disparities affecting minority populations. It partners with local and federal entities to research solutions that reduce healthcare costs, prevent disease, and improve chronic disease outcomes.

The legality of completely eliminating this office is in question due to its statutory foundation. Carlton emphasized that CMS is committed to continuing its responsibilities under the law and plans to appoint a new director for the office. However, it remains unclear whether Dr. Martin Mendoza, the current director, was directly affected by the layoffs.

Office of Program Operations & Local Engagement

Carlton described this office as “probably the biggest group that was affected.” The office is responsible for implementing Medicare and Medicaid programs and fostering local stakeholder engagement. The restructuring targeted overlapping functions among various divisions within the office.

Other Offices Affected

Several other CMS functions experienced staff reductions:

• Grants and Contracts Management Office: This office, responsible for overseeing CMS’s financial partnerships, was among those affected.

• Medicare-Medicaid Coordination Office: Tasked with improving care coordination for individuals eligible for both Medicare and Medicaid, this office also saw staffing changes. Some of its functions will be reassigned either within CMS or to external entities.

Offices Retained

Carlton assured employees that CMS would maintain its internal teams handling:

• Communications

• Human Resources

• Information Technology

The IT department, in particular, remains intact due to the critical nature of the data it manages.

Leadership Transition

Carlton also informed staff that Dr. Mehmet Oz’s paperwork was expected to be finalized later that day. Confirmed by the Senate to lead CMS, Oz is scheduled to host another all-hands meeting the following Monday. Known widely as “America’s Doctor,” Oz brings both media recognition and controversy due to past endorsements of unproven medical treatments.

Context of the Cuts

These layoffs come on top of a wave of voluntary departures from HHS since President Donald Trump returned to office. About 10,000 employees had already opted to leave through early separation offers. With Kennedy’s additional reductions, HHS’s total workforce will shrink by approximately 25%, from 82,000 to 62,000 employees.

The restructuring occurs during a precarious time for public health. The nation is contending with its most severe measles outbreak in over 20 years, and avian influenza continues to spread among birds, livestock, and humans. The U.S. Food and Drug Administration has reportedly paused efforts to strengthen testing for bird flu in dairy and pet food due to its own staff cuts.

Conclusion

The job cuts at CMS reflect a deeper and more controversial reshaping of federal healthcare oversight. While the agency’s leadership asserts that the most painful cuts are now behind them, the long-term impact on program delivery, community engagement, and minority health initiatives remains uncertain. With new leadership under Dr. Mehmet Oz and a reduced workforce, CMS must now navigate its mission in a dramatically altered federal landscape.

FAQs

What is the reason behind the CMS job cuts?

The job cuts are part of Robert F. Kennedy Jr.’s larger plan to restructure the Department of Health and Human Services, aimed at improving efficiency and reducing the overall size of the federal health workforce.

How many CMS jobs were cut?

Approximately 300 positions were cut at CMS, part of a broader 10,000 job reduction across HHS.

Was the Office of Minority Health eliminated?

While the Office of Minority Health was impacted, CMS has stated it will continue fulfilling its legal obligations and plans to appoint a new director. However, the future structure and capacity of the office remain unclear.

Who is the new CMS Administrator?

Dr. Mehmet Oz, a former television host and U.S. Senate candidate, has been confirmed by the Senate to lead CMS. His paperwork is expected to be finalized shortly.

How will these changes affect Medicare and Medicaid?

While CMS leadership has downplayed the impact, the job cuts in program operations and coordination could affect the implementation and oversight of Medicare and Medicaid services, especially at the local level. Some responsibilities may be shifted internally or to external partners.

Are more job cuts expected at CMS?

According to Acting Administrator Stephanie Carlton, the current round of cuts is believed to be complete. However, she did not rule out future changes.