US SEC’s new chief says 15% of staff have left, contract cuts to come, sources say

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By Chris Prentice and Douglas Gillison

WASHINGTON (Reuters) -The new head of the U.S. Securities and Exchange Commission told staff on Tuesday the agency has lost 15% of its headcount across offices and divisions and he expects to conduct a “targeted” reorganization, according to sources familiar with the matter.

Paul Atkins, who was sworn in two weeks ago, said the agency would begin reviewing the SEC’s contracts for business services on Wednesday, especially in information technology, four of the sources said.

The SEC has shed more than 600 staff members through resignation offers as part of efforts to shrink the federal government by President Donald Trump and billionaire adviser Elon Musk’s Department of Government Efficiency.

Atkins did not rule out the possibility of further reductions in headcount, something that has provoked deep unease among SEC staff. He also did not mention DOGE, which has been present at the agency since March, they said.

An SEC representative did not immediately answer a request for comment.

The remarks delivered to a packed auditorium at SEC headquarters and billed as a “town hall,” marked Atkins’ first address to all staff and came as DOGE has increased its presence at the SEC’s Washington D.C. home office.

In a message that appeared aimed at striking an optimistic tone, Atkins told staff the SEC would be returning to its core missions and that a top priority would be to put in place sensible rules for the cryptocurrency sector, the sources said.

The SEC’s core missions are maintaining orderly markets, protecting investors and facilitating capital formation.

Atkins took no questions, citing the short time since his arrival, according to two of the sources. He also said that the commission’s three other members had been assigned specific duties, according to three sources.

Republican and former acting Commissioner Mark Uyeda would handle relations with the International Organization of Securities Commissions, a standard-setting body while fellow Republican Hester Peirce would continue leading a new crypto task force.

Caroline Crenshaw, the commission’s sole Democrat, was to handle matters involving recent Supreme Court precedent and the use of in-house judges.

The three commissioners did not immediately respond to requests for comment.

The large number of departures left at least some vacancies that need to be filled, Atkins told staff, according to two of the sources. That may provide opportunities for younger staff members.

(Reporting by Chris Prentice in New York and Douglas Gillison in Washington; Editing by David Gregorio)