Health Department Accidentally Laid Off Nearly 800 Workers

Oct. 14, 2025, 11:35 PM UTC

The US Department of Health and Human Services fired 778 employees in error during the latest round of shutdown-induced cuts, an agency official told a federal court Tuesday.

In a court filing with the US District Court for the Northern District of California, HHS Chief Capital Officer Thomas Nagy said that “data discrepancies and processing errors” led to 1,760 workers receiving termination notices—nearly double the 982 that were intended.

The department has been working since Friday to rescind the 778 erroneous notices, Nagy said. Those who were correctly let go won’t be laid off for 60 days.

The filing came as part of a larger case challenging the Trump administration’s reductions-in-force brought by federal unions.

Nagy and the HHS press office didn’t immediately respond to requests for comment.

The case is AFGE v OMB, N.D. Cal., No. 25-cv-08302, 10/14/25.


To contact the reporter on this story: Ian Kullgren in Washington at ikullgren@bloombergindustry.com

To contact the editor responsible for this story: Alex Ruoff at aruoff@bloombergindustry.com

Learn more about Bloomberg Law or Log In to keep reading:

Learn About Bloomberg Law

AI-powered legal analytics, workflow tools and premium legal & business news.

Already a subscriber?

Log in to keep reading or access research tools.