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What RFK Jr.’s plans to cut 20,000 HHS job could mean for the pharma sector

By Brian Buntz | March 31, 2025

Washington DC, USA - July 3, 2017: Sign for Department of Health and Human Services in downtown

[Image licensed from Adobe Stock]

The pharma industry faces uncertainty as new HHS Secretary Robert F. Kennedy Jr. spearheads a major departmental overhaul aiming for a total reduction of about 20,000 positions (nearly a quarter of the workforce). The cuts build on roughly 10,000 voluntary departures earlier in 2025.

A formal plan announced March 27, 2025, initiates Reduction-in-Force (RIF) actions targeting another 10,000 jobs, according to sources like NPR and Reuters. The prospect raises concerns about potential disruptions to FDA drug approvals, NIH research funding, and CDC public health guidance. The planned RIFs reportedly target 3,500 positions at the FDA, 2,400 at the CDC, and 1,200 at the NIH, according to official HHS documents and reports from sources like CIDRAP.

Kennedy has stated he intends to “eliminate an entire alphabet soup of departments and agencies, while preserving their core functions,” targeting areas within the FDA he believes obstruct processes, according to The Washington Post and his own statements. He previously mentioned the FDA’s nutrition department as one that might “have to go.” The moves have prompted warnings from industry analysts about a potential regulatory vacuum. While Kennedy frames the cuts as removing bureaucratic barriers, dismantling established review processes threatens the regulatory predictability essential for navigating long, high-risk drug development pipelines where failure rates are historically high.

Reasoning behind the proposed cuts

RFK Jr., a long-time critic of federal health agencies, argues the department is bloated, corrupt, and misaligned with public health needs. His “Make America Healthy Again” platform emphasizes tackling chronic diseases through nutrition and environmental health over pharmaceuticals. Upon confirmation in early 2025, Kennedy pledged to end “corporate corruption” at agencies like FDA, CDC, and NIH while also prioritizing removing some additives from food (such as some food dyes) and putting his weight behind psychedelics.

Kennedy argued cutting bureaucracy was necessary to “realign the organization with its core mission” of public health, focusing on reversing chronic disease trends, as Reuters noted. He also cited the need for “radical transparency” and accountability, promising unprecedented openness with Congress.

Specifics of the plan

Kennedy’s overall plan aims to downsize HHS from roughly 82,000 to 62,000 employees through a combination of voluntary departures and the planned 10,000 RIFs. The reorganization also involves shuttering five of 10 regional offices and consolidating 28 smaller offices/divisions into 15 new ones, including creating a new “Administration for a Healthy America” (AHA). These actions followed approximately 10,000 employees leaving voluntarily via buyouts and other programs (like “Fork in the Road”) in early 2025 after President Trump took office.

Downsizing began shortly after the 2024 election. Following the voluntary separations in early 2025, HHS executed a mass firing of thousands of probationary employees across multiple agencies after Kennedy’s February 13 confirmation, an event dubbed the “Valentine’s Day Massacre,” per KFF Health News. In the wake of these initial firings, the head of the FDA’s food safety division resigned in protest. The director of Center for Biologics Evaluation and Research (CBER), Peter Marks M.D., PhD., is also out.

The formal plan detailing the RIFs targeting 10,000 additional jobs (including the specific agency numbers mentioned earlier) was announced March 27, 2025.

Public and political reactions to the proposal

The proposal provoked intense reactions. Conservatives and Trump allies applauded the overhaul, with President Trump stating Kennedy would lead a “great national mission to make America healthy again” according to White House Remarks. Senator Chuck Grassley praised Kennedy’s transparency pledge and efficiency focus (See: Grassley Senate Remarks).
Conversely, Democrats and public health advocates condemned the plan. Senator Mark Warner questioned Kennedy during his confirmation hearing about impacts on critical functions. The American Public Health Association expressed alarm about losing frontline workers and expertise. Former leaders of CDC, FDA, NIH, and CMS warned in an open letter that “the health and well-being of families and communities… will suffer”. Public health experts warned the cuts could have untold consequences.

Implications for the pharma industry

For the pharmaceutical industry, the plan raises distinct concerns. Kennedy’s stated intention to eliminate departmental structures at the FDA, even while pledging to preserve core functions, creates uncertainty. While HHS has stated the cuts will not affect FDA drug, medical device, or food reviewers or inspectors, some experts and former officials warn the changes are likely to affect personnel involved in policy development (e.g., for AI, real-world data), consumer safety offices, initial application reviewers, and potentially delay drug and medical device application reviews or cause missed deadlines. Significant NIH cuts (1,200 planned RIFs) could impact research administration and grant pipelines fueling pharmaceutical innovation, as CIDRAP has noted.

Kennedy’s long-standing criticisms of “Big Pharma” suggest a potentially more adversarial relationship. For vaccine makers, his skepticism and stated intention to reassess vaccine policies adds uncertainty. As the overhaul continues, the sector faces a shifting regulatory landscape under Kennedy’s stated mission of “making America healthy again”.


Filed Under: Regulatory affairs
Tagged With: HHS
 

About The Author

Brian Buntz

As the pharma and biotech editor at WTWH Media, Brian has almost two decades of experience in B2B media, with a focus on healthcare and technology. While he has long maintained a keen interest in AI, more recently Brian has made making data analysis a central focus, and is exploring tools ranging from NLP and clustering to predictive analytics.

Throughout his 18-year tenure, Brian has covered an array of life science topics, including clinical trials, medical devices, and drug discovery and development. Prior to WTWH, he held the title of content director at Informa, where he focused on topics such as connected devices, cybersecurity, AI and Industry 4.0. A dedicated decade at UBM saw Brian providing in-depth coverage of the medical device sector. Engage with Brian on LinkedIn or drop him an email at [email protected].

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