US Layoffs: Trump and Musk Cut 85,000 Federal Jobs as DOGE Saves $1 Billion Daily
US Layoffs: Trump and Musk’s Workforce Cuts Reach 85,000, DOGE Claims $1 Billion Daily Savings
Mass Federal Layoffs Under Trump’s Cost-Cutting Plan
In a bold move to downsize the US federal workforce, President Donald Trump and Tesla CEO Elon Musk have implemented mass layoffs, leading to the termination of over 85,000 employees so far. The initiative, led by the newly formed Department of Government Efficiency (DOGE) under Musk’s leadership, aims to streamline government operations and cut costs.
On Friday, more than 9,500 federal workers lost their jobs across multiple agencies, including the Departments of Interior, Energy, Veterans Affairs, Agriculture, and Health and Human Services. This follows an earlier phase where 75,000 employees accepted a deferred buyout program, forfeiting their jobs in exchange for payments until September 30.
Trump’s Strategy to Reduce Government Workforce
According to Bloomberg, Trump has directed agency heads to collaborate with Musk to “significantly reduce the size of the government” and restrict new hiring. As per a White House fact sheet, agencies can only hire one new employee for every four workers leaving.
These job cuts primarily affected employees still in their probationary period, meaning those who had been working for less than a year. However, the layoffs are not confined to specific departments. Reports from Reuters suggest that the Internal Revenue Service (IRS) is also planning to lay off thousands of employees in the coming weeks.
Layoffs Across Multiple Government Agencies
Among the key agencies affected is the Department of Education, which has faced budget cuts and contract cancellations. Reports indicate that 160 employees were handed termination letters as part of its restructuring process.
Additionally, Elon Musk’s DOGE slashed nearly $1 billion in government contracts, leading to the closure of independent research initiatives that collected data on student performance.
USAid Shuts Down as Trump Slashes Foreign Aid
One of the most significant actions taken under this downsizing effort is the dismantling of the US Agency for International Development (USAid). USAid, which historically allocated around $40 billion annually to international aid efforts, was one of the first agencies targeted for shutdown.
Musk imposed a freeze on foreign aid, placing hundreds of employees on unpaid leave before completely shutting down the agency. In a controversial statement, Musk initially claimed that USAid had sent $50 million worth of condoms to Gaza, though he later retracted this assertion.
DOGE Claims $1 Billion in Daily Savings
Elon Musk’s Department of Government Efficiency has touted the success of its cost-cutting measures. In a statement posted on X (formerly Twitter), DOGE claimed that its efforts are saving the federal government approximately $1 billion per day.
The department attributed these savings to:
- Halting unnecessary hiring
- Eliminating Diversity, Equity, and Inclusion (DEI) programs
- Stopping improper payments to foreign organizations
Trump echoed these claims in a statement reported by The Washington Post, saying:
“We’re talking about tens of billions of dollars that we’ve already found. … But you’re talking about maybe 500 billion. It’s crazy the numbers you’re talking about.”
Musk and DOGE, however, insist that these cost reductions need to increase to over $3 billion per day to meet their ultimate goal of reshaping government efficiency.
What is DOGE and Its Role in Workforce Reduction?
The Department of Government Efficiency (DOGE) was created by Trump upon his re-election as the 47th President of the United States. Led by Tesla and SpaceX CEO Elon Musk, the agency was tasked with overseeing mass layoffs, workforce restructuring, and budget optimization across federal departments.
Since its inception in January 2025, DOGE has aggressively cut jobs and slashed government spending, with the broader goal of reducing bureaucratic costs and optimizing operational efficiency.
The Future of Federal Employment Under Trump & Musk
With federal agencies already experiencing massive job losses, experts predict that further layoffs are on the horizon. The White House has made it clear that this is just the beginning of an extensive effort to reshape the federal workforce.
As reports surface about potential layoffs at the IRS, Education Department, and other federal institutions, the coming weeks could see tens of thousands of additional job cuts.
For government employees, uncertainty looms large as Trump and Musk push ahead with their vision of a leaner, cost-efficient federal system. Whether this will ultimately benefit taxpayers or create new challenges remains to be seen.
