SBA Reverses Layoff Reversals, Confusing Staff

Imagine getting the best news of your life – your job is back! – only to have it snatched away the very next day. That’s the confusing and demoralizing situation unfolding at the Small Business Administration (SBA), where recently laid-off employees were offered their positions back, only for that offer to be rescinded almost immediately.

A Rollercoaster of Emotions for Staff

The drama began when the SBA sent reduction-in-force (RIF) notices to 77 employees on September 29, just one day before the nation experienced its longest government shutdown. This news undoubtedly cast a dark cloud over the holiday season for those affected. Then, a glimmer of hope appeared this week when a top HR official informed dozens of staff that they were, in fact, returning to work.

SBA’s Chief Human Capital Officer, John Serpa, sent a notice on November 18 stating, “This letter is to formally rescind the reduction in force (RIF) notice dated 9/29/25… You are being reinstated to your position of record with the Small Business Administration (SBA).” However, the relief was short-lived. Just a day later, Serpa retracted the reinstatement, confirming the layoffs would stand. This whiplash has understandably sent morale plummeting, with one Reddit user describing it as a “mental mind f*ck.”

The Root of the Confusion: A Spending Deal

The chaos reportedly stems from differing interpretations of the language in the spending deal Congress passed to end the government shutdown. The SBA spokesperson told Federal News Network (FNN) that the agency concluded the new continuing resolution “does not apply to any RIFs executed” by the agency. Therefore, the RIF affecting the 77 positions remains in effect.

However, the spending bill, enacted on November 12, explicitly states that “any reduction in force proposed, noticed, initiated, executed, and implemented, or otherwise taken by an executive agency between Oct. 1, 2025, and the date of enactment, shall have no force or effect.” This seems to directly contradict the SBA’s stance.

Legal Injunctions and RIF Notices

Adding another layer to the situation, the SBA layoffs were not covered by a preliminary injunction issued by a federal judge. This injunction blocked the Trump administration from proceeding with layoffs during the shutdown. U.S. District Court Judge Susan Illston noted that the RIF notices for SBA employees were issued on September 29 or 30, prior to the shutdown, and thus wouldn’t be included in the injunction’s protection.

This complex interplay of legislative language, agency interpretation, and judicial rulings has created a deeply uncertain and frustrating environment for the affected SBA employees. The agency’s back-and-forth decision-making has left many questioning their job security and the stability of their workplace.