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We propose Powerformer, an efficient homomorphic encryption (HE)-based privacy-preserving language model (PPLM) designed to reduce computation overhead while maintaining model performance. Powerformer incorporates three key techniques to optimize encrypted computations:1. A novel distillation technique that replaces softmax and layer normalization (LN) with computationally efficient power and linear functions, ensuring no performance degradation while enabling seamless encrypted computation.2. A pseudo-sign composite approximation method that accurately approximates GELU and tanh functions with minimal computational overhead.3. A homomorphic matrix multiplication algorithm specifically optimized for Transformer models, enhancing efficiency in encrypted environments.By integrating these techniques, Powerformer based on the BERT-base model achieves a 45% reduction in computation time compared to the state-of-the-art HE-based PPLM without any loss in accuracy.