Bracing for Impact: SEC Prepares to Shed 12% of Its Staff

March 28, 2025

Key Takeaways:

• Hundreds of SEC staff across key departments have agreed to take resignation offers.
• Reduced staff will adversely impact response times for public offerings and reviews of periodic reports and disclosures.

Key Contacts:

Geoffrey R. Morgan                                                          
Founding Partner
gmorgan@crokefairchild.com
(414) 588-2948

Sidney Kerley                                                          
Partner, CFDB
skerley@crokefairchild.com
(872) 224-2910

In an article linked here, Reuters reported that hundreds of SEC staff across key departments have agreed to take resignation offers pursuant to President Trump and Elon Musk’s efforts to downsize the federal government. The departures include senior staff and enforcement lawyers who are responsible for policing the markets and protecting investors. Reportedly, more than 600 employees have agreed to take the buyouts, with more expected. Some sources cited by Reuters indicate that as many as 700 employees have already departed the SEC since late January, more than 150 of whom worked in the Division of Enforcement.

We believe these staff reductions will have an adverse impact on response times both within the Division of Enforcement and the Division of Corporation Finance, which is of course responsible for review of public offerings and review of periodic reports and disclosures. We will keep you posted of developments as they occur.

Questions? Please get in touch with Geoffrey Morgan, Sidney Kerley or another member of the SEC, Corporate Governance & Business Counseling team.