About one-third of the staff in the U.S. Commerce Department office overseeing $39 billion of manufacturing subsidies for chipmakers was laid off this week, two sources familiar with the situation said.

The US government office responsible for a marquee $52 billion chip subsidy program will lose about two-fifths of its staff as President Donald Trump slashes the federal workforce, according to people familiar with the matter.

About one-third of the employees in the U.S. Commerce Department overseeing the $39B CHIPS Act aid for chip manufacturers were laid off this week, Reuters reported, citing people with knowledge of the matter.