Defense Civilian Downsizing

GAO has been monitoring the Pentagon's management of civilian force reductions since 1991. This report (1) updates the status of the Defense Department's (DOD) civilian work force reductions; (2) updates some of the problems and consequences arising from DOD's approach to civilian downsizing, including the difference in how white-collar and blue-collar employees have been affected so far; and (3) provides a preliminary assessment of DOD's initial use of financial separation incentives. GAO also discusses some important constraints on DOD's planning for future force reductions.

GAO found that: (1) DOD has reduced its civilian work force by 127,000 positions; (2) most civilian reductions have occurred without benefit of a plan to target when and where many of the reductions should occur; (3) DOD has relied on voluntary attrition and hiring freezes to meet its civilian work force reduction goals; (4) DOD civilian downsizing has adversely affected internal operations, created numerous work force imbalances, and resulted in a more costly work force; (5) downsizing actions have had a greater impact on blue-collar workers in each of the services than white-collar workers; (6) until May 1992, senior DOD officials opposed the use of financial separation incentives to facilitate civilian downsizing; and (7) in some instances, DOD offered separation incentives to employees in specific positions or to large employee groups at given installations to minimize involuntary separations.