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Home » Musk Helps Trump Slash Jobs
News Update

Musk Helps Trump Slash Jobs

Trump and Musk lead large-scale federal layoffs, agency downsizing, budget cuts, foreign aid freeze, and spending reductions
News DeskBy News Desk27 February 2025No Comments3 Mins Read
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U.S. President Donald Trump’s administration has intensified efforts to downsize the federal workforce, with billionaire Elon Musk playing a key role in the initiative. At Trump’s first cabinet meeting, Musk outlined his ambitious budget-cutting targets, signaling a significant shift in government operations.

Large-Scale Layoffs Planned

A new directive requires federal agencies to submit plans by March 13 for major workforce reductions. While specific numbers were not mentioned, the cuts are expected to go beyond previous rounds, which mainly targeted probationary employees. This phase will impact long-serving civil servants across various departments.

Federal Agencies Face Drastic Reductions

Several agencies, including the Environmental Protection Agency and the Interior Department, have been ordered to prepare for layoffs. Reports indicate the EPA could reduce its staff by 65%, while agencies such as the U.S. Fish and Wildlife Service and the Bureau of Indian Affairs may see workforce cuts of up to 40%. So far, approximately 100,000 federal employees have either been laid off or accepted buyouts.

Musk’s Influence in Government Downsizing

Despite not holding an official cabinet position, Musk has been actively involved in government restructuring. Trump publicly backed Musk’s initiatives, allowing him to present his cost-cutting plans, including a proposal to trim $1 trillion from the $6.7 trillion federal budget. Trump reinforced his support, asking cabinet members if anyone disagreed with Musk’s approach, receiving only laughter in response.

Executive Orders to Cut Spending

Trump signed an executive order directing agencies to collaborate with Musk’s Department of Government Efficiency (DOGE) to eliminate unnecessary contracts and dispose of unneeded federal properties. However, government spending remains high, with an increase of 13% in Trump’s first month compared to the previous year.

Tax Cuts and Budget Challenges

Trump has pledged not to reduce healthcare and retirement benefits, despite calls for budget cuts. Meanwhile, his administration is pushing to extend the 2017 tax cuts, which added $2.5 trillion to the national debt. If extended, the cuts could increase the debt by another $5 trillion over the next decade, leading Republicans to consider cuts to healthcare and food aid.

Confusion Over Workforce Evaluations

A recent directive required federal employees to submit weekly reports detailing their accomplishments or risk termination. This led to confusion, as some agencies instructed workers to disregard the order. Musk claimed the email was intended to verify the legitimacy of government salaries, alleging—without evidence—that some employees might be deceased.

Disruptions Across Government Operations

The restructuring has already disrupted foreign aid, halted construction projects, and affected scientific research. Nearly 10,000 grants and contracts have been canceled, and the General Services Administration (GSA) is set to terminate 1,100 office leases by year-end. More cuts are expected, as the administration pushes forward with its aggressive cost-reduction strategy.

banner budget cuts business Elon Musk government downsizing EPA layoffs federal workforce reduction India Musk cost-cutting plan tax cuts impact Trump federal job cuts Trump Musk layoffs U.S. government spending cuts
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Tamil Nadu explores high speed rail across major districts

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