Federal employees are on edge as President Donald Trump, flanked by Elon Musk, signed an executive order calling for ‘large-scale’ staff cuts across US agencies. The directive aims to restructure government operations, targeting non-essential offices while tightening hiring policies in a historic downsizing move.
With Elon Musk by his side, President Trump signed an executive order Tuesday to drastically slash the size of the federal government. The order instructs department and agency chiefs to devise plans for massive force reductions.
The latest executive order from Trump mandates the implementation of a “workforce optimization strategy” developed by Musk’s Department of Government Efficiency. This agency has been swiftly cutting spending and programs across government agencies.
“It’s not optional to reduce federal expenses, it’s essential,” Musk, flanked by his son X and donning a black MAGA hat, remarked while standing next Trump, who was seated behind the Resolute Desk. According to Musk, the federal bureaucracy should be held responsible since it is an unelected, unlawful fourth department of government.
According to a White House description of the order, agency chiefs are instructed to work together and seek advice from DOGE in order to reduce the size of the federal workforce and restrict hiring to necessary roles.
“Agency heads shall promptly undertake preparations to initiate large-scale reductions in force, consistent with applicable law,” the order states. It says that during budget cuts, those departments that aren’t required to do so by law should be given priority.
According to the White House, Trump signed the directive after escorting reporters out of the Oval Office, rather than while they were still inside.
Trump claimed, “We’ve already found billions of dollars of abuse incompetence and corruption” in reference to DOGE’s investigations into wasted expenditure. Throughout their almost 30 minute argument with reporters, both Trump and Musk used the word “fraud” multiple times.
The billionaire CEO of SpaceX made his first public appearance with the president to field questions from media since assuming power in Trump’s second term. Responding to many queries from reporters, Musk emphasized his commitment to DOGE’s accountability and vowed not to take on any projects that could cause him to have a conflict of interest. Musk has contacts with the Pentagon worth billions of dollars through SpaceX.
In an effort to significantly cut the federal workforce, the Trump administration has offered buyouts to nearly all 2.3 million federal employees, prompting the new directive. The offer, which would pay workers through September in exchange for their resignation, is presently stalled in court due to a legal challenge made by federal employees unions. On Monday, a federal judge in Massachusetts prolonged a halt to hear arguments from both sides of the case.
If federal employees do not consent to the buyouts in sufficient numbers, the Trump administration has threatened furloughs and layoffs. Although the White House had hoped for 5–10% participation, more than 60,000 federal employees (or 2.6% of the workforce) had taken advantage of the buyouts.
Following the expiration of the government hiring freeze, which was imposed by Trump’s executive order on the first day of his administration, the directive instructs federal agencies to hire no more than one person for every four employees who leave. There will be an exception for departments dealing with public safety, immigration, and law enforcement.
This executive order directs the United States Office of Personnel Management to promulgate new regulations imposing stricter behavioral requirements on all federal employees. Citizenship in the United States and timely filing of federal tax returns are two examples.
The statutes that created an agency must also be detailed in a report that agency heads must send to the OMB within 30 days.
The mandate states that the study must address the possibility of eliminating or consolidating the agency or any of its subcomponents.
Last Monday, the OPM sent a letter to all agency and department chiefs requesting the names of all employees who had a performance rating lower than “fully successful” during the previous three years. In addition, they were asked to pinpoint any obstacles that would hinder the capacity to promptly fire underperforming personnel who show no signs of improving.
What are the two most important factors that must be considered in order to reduce the budget deficit from $2 trillion to $1 trillion? Musk muttered. “It’s really two things: competence and caring.”
Luis Gochoco is a seasoned managing editor and writer with over a decade of experience covering politics, technology, gaming, and entertainment news. With a keen eye for breaking stories and in-depth analysis, he has established himself as a trusted voice in digital journalism. Luis is one of the key forces behind the success of GameNGuide, contributing to 12 million views through engaging and high-traffic content. He also played a pivotal role in generating 8 million views on International Business Times, shaping the platform’s technology and gaming coverage.
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