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HHS Faces Significant Cuts, Impacting Technology Operations at FDA

The Department of Health and Human Services (HHS) is undergoing a substantial workforce reduction, aiming to trim its staff by 20,000 employees. This move is raising concerns within its technology divisions, particularly at the Food and Drug Administration (FDA), where vital tech operations may be jeopardized.

On April 1, a large portion of the executive leadership within the FDA’s Office of Digital Transformation was placed on administrative leave, according to two employees who requested anonymity due to restrictions on speaking publicly. This group includes significant figures such as the chief information officer and the chief technology officer, along with other key positions responsible for technology strategies and operations.

The FDA has also seen a reduction in career staff across its tech divisions, including a complete downsizing of the Office of Enterprise Portfolio Management. One employee remarked, “All strategy, architecture, design, and financial management capabilities have been eliminated. Everything strategic is gone. What remains is primarily focused on tactical operations and cybersecurity.”

These workforce reductions, combined with the voluntary resignation offers extended earlier this year, have slashed the FDA’s tech office personnel by approximately 40%. Within the remaining staff, only cyber leadership and operational support have not been placed on administrative leave.

Concerns arise over the lack of transparency during this transition, with remaining employees reporting that they have not received any communication regarding who will manage critical technology operations. As one employee expressed, “We are left in the dark regarding leadership for systems that handle billions of dollars in industry trade secrets. Nobody seems to be considering the risks involved.”

Others have pointed out that the current restructuring appears to be geared towards centralizing IT at a departmental level, rather than managing these functions within individual components like the National Institutes of Health (NIH) or the Centers for Disease Control and Prevention (CDC). Notably, HHS plans to consolidate its 28 divisions into 15.

Despite this push for centralization, recent layoffs have also affected the central HHS Office of the Chief Information Officer. Reports indicate that nearly half of the staff in this office were laid off on April 1, leaving questions about the capacity of HHS to manage technology functions effectively if it seeks to consolidate IT resources.

In addition, senior executive service employees in the HHS CIO office were reassigned to the Indian Health Service (IHS), which is already facing significant staffing challenges. An HHS spokesperson stated that these reassignments are voluntary, offering individuals the choice to accept or decline.

With the impending departure of HHS Chief Information Officer Jennifer Wendel at the end of the month, the department is also welcoming Clark Minor, a previous Palantir employee, into a senior role that some suggest might be the CTO position, although reports have varied on his exact title.

HHS officials have emphasized that the recent cuts were mainly aimed at eliminating redundant administrative roles. Interestingly, despite having only 28 divisions, HHS reportedly maintained 41 chief information officers.

Employees have expressed skepticism regarding the efficacy of consolidating tech roles across the various HHS branches, noting that each division, such as the FDA and CDC, has distinct technological needs that cannot be uniformly addressed.

Amid these cuts, critical systems are at risk. Employees are concerned about who will oversee essential department-wide systems, including payroll and telecommunications. The Office of Enterprise Services, in particular, has lost all of its staff, who managed software licensing and enterprise infrastructure contracts across the department.

Overall, the hasty nature and lack of coherent strategy behind these workforce reductions raise alarms regarding the preservation of HHS’s technological framework. As one employee put it, “Everything that supports the department’s digital backbone is at risk. There’s a concerning absence of acquisition authority, fiscal oversight, and strategic continuity.”

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