Key insights
- The Trump administration is reclassifying hundreds of HHS employees, potentially removing civil service job protections. While framed as finalizing previously announced RIFs, the move introduces uncertainty and could impact morale within the agency. The immediate market impact is minimal, but it signals potential shifts in government workforce management.

By Ahmed Aboulenein
WASHINGTON, May 15 (Reuters) - President Donald Trump’s administration on Friday moved to strip U.S. Department of Health and Human Services workers of civil service job protections, according to an email reviewed by Reuters.
HHS employees at several agencies received the email, which said members of their teams would be affected by the reclassification, known as Schedule P/C and formerly as Schedule F.
At HHS the reclassification will initially apply to employees "on the order of hundreds, not thousands," the email said, with additional tranches to follow.
An HHS official confirmed the email’s authenticity and said it "reflects the finalization of previously announced RIFs," referring to reductions in force or mass layoffs. The official said no new RIFs were planned.