At a hearing before the House Appropriations Subcommittee this week, Chair Paul Atkins acknowledged the scope of attrition at the agency, reported WealthManagement. Headcount has dropped 15% since the start of the fiscal year. At its peak, the SEC employed around 5,000 people. Today, that number is 4,200. The decline is not just numerical, it’s institutional. Legal and investment management divisions have been the hardest hit. 

Many staff took early retirement or participated in the “Fork in the Road” buyout program. Others simply left. According to Reuters, the regional offices in Los Angeles and Philadelphia may soon close, with San Francisco, Denver, and Chicago also absorbing substantial losses.  

Atkins said the Commission still needs a physical presence beyond D.C. and New York. Regional offices, he argued, are essential for practical supervision. But some of his colleagues were more blunt. Commissioner Caroline Crenshaw called the cuts “the first, and perhaps most devastating, Jenga piece to go.”  

The SEC has not said how many roles it intends to refill, or when. But those watching say morale has already bottomed out. “Crushed,” said former SEC advisor Corey Frayer, comparing the current state to the agency’s post-Madoff low.