Patent Office Lays Off Staff as Government Shutdown Begins (2)

The US Patent and Trademark Office laid off certain employees early Wednesday as a part of a reduction-in-force plan, according to multiple sources.

The PTO laid off some employees on teams including the communications team, office of public engagement, and patents unit, according to five sources familiar with the matter who spoke with Bloomberg Law on the condition of anonymity. The move comes as the federal government shut down Wednesday due to a funding impasse. The PTO remains open and operational despite the funding lapse because of operating reserves from fee collection, according to a notice on the PTO website.

Approximately 1% of the agency’s workforce—which totals roughly 14,000 employees—was impacted by the RIF, Acting Commissioner of Patents Valencia Martin Wallace wrote to staff in an email, a copy of which was reviewed by Bloomberg Law. Wallace said six positions in the patents unit were affected, and the layoffs were initiated to “focus on mission-critical operations.”

On Tuesday, President Trump suggested there could be dismissals of federal workers if federal funding ran out, and the White House directed agencies last week to draw up plans for widespread firings if the government closed down, Bloomberg News reported.

The reduction in force comes within weeks of the arrival of new PTO Director John Squires, who was confirmed and sworn in in late September.

Squires told PTO staff the reduction in force is “intended to focus resources on core operations and is not a reflection on anyone’s service, performance, or conduct,” according to a copy of the email reviewed by Bloomberg Law.

“Know that the decisions behind the changes announced were made after full and careful deliberation and the actions were taken with the utmost consideration for our workforce, stakeholders, and to be in full alignment with both the agency’s unique mission and the dynamic future that lies ahead,” Squires said in the email.

He added that the changes were “difficult” and that he would communicate in the coming days and weeks to discuss their impact.

Janet Gongola, the acting chief communications officer, and the PTO didn’t respond to requests for comment.

The PTO also on Wednesday announced the closure of its satellite office in Denver, citing high operating costs.

A typical regional office requires more than $1 million of leased office space and overhead expenses, the PTO said in a Wednesday press release. The Rocky Mountain Regional Outreach Office in Denver had less than 10 employees as of December 2024, it said.

The release said the closure of the office is consistent with an assessment in a December 2024 Report to Congress explaining why physical office space was less necessary.