With Musk at his side, Trump orders US agencies to plan for 'large-scale' staff cuts

investing.com 11/02/2025 - 20:05 PM

Trump Orders Federal Workforce Reduction

By Jeff Mason and Steve Holland

WASHINGTON (Reuters) – President Donald Trump ordered U.S. agencies on Tuesday to collaborate with top adviser Elon Musk to shrink the federal workforce by identifying employees to lay off and functions to eliminate.

With his 4-year-old son nearby, Musk, the billionaire and CEO of Tesla, stood with Trump in the Oval Office before the signing, answering questions and expressing his mission to cut perceived government waste at Trump’s request.

Wearing a “Make America Great Again” cap, Musk defended his unprecedented authority as an unelected official, stating, “You can’t have an autonomous federal bureaucracy. You have to have one that’s responsive to the people.” He criticized the bureaucracy as an “unconstitutional” fourth branch of government, claiming it holds more power than elected representatives.

Musk faced backlash regarding the secrecy surrounding his team’s operations, known as DOGE, which has not disclosed employee details or specific actions taken within agencies. While claiming he’s prepared for scrutiny, Musk expected significant results, although providing little detail.

“The people voted for major government reform. There should be no doubt about that,” Musk stated, mentioning he speaks to Trump daily.

Tuesday’s executive order represents another effort to align the government with Trump’s priorities, already leading to buyout offers and the loss of civil-service protections. The order mandates that for every four departing employees, agencies may hire only one new worker and must collaborate with Musk’s team to identify further cuts.

Critical roles related to national security and law enforcement are exempt from these cuts. Previous attempts to reduce staffing faced legal challenges due to union contracts and workers’ protections.

Musk and Trump anticipate savings of about $1 trillion by eliminating fraud and waste, impacting nearly 15% of federal spending. Critics have raised potential conflicts of interest due to Musk’s ties with the Pentagon.

In response to blocks against Trump’s buyout plan and other executive actions, Musk criticized law firms and judges opposing these measures, insisting that democracy is threatened by judicial interventions.

Trump echoed these sentiments, expressing frustration with legal obstacles hindering reform initiatives and asserting that those should be addressed.

Note: The U.S. civilian workforce consists of approximately 2.3 million employees, excluding the Postal Service.





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