• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year

2

The river that supplies 40 million Americans is down to 23% — and about to make a $25 million bet on one fish

3

Jamie Dimon said the American Dream was slipping away. JPMorgan just put $40 million on the table to fix it

1

Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year

2

The river that supplies 40 million Americans is down to 23% — and about to make a $25 million bet on one fish

3

Jamie Dimon said the American Dream was slipping away. JPMorgan just put $40 million on the table to fix it
PoliticsElon Musk

Trump directs federal job cuts as Musk defends downsizing

By
Hadriana Lowenkron
Hadriana Lowenkron
,
Gregory Korte
Gregory Korte
, and
Bloomberg
Bloomberg
Down Arrow Button Icon
By
Hadriana Lowenkron
Hadriana Lowenkron
,
Gregory Korte
Gregory Korte
, and
Bloomberg
Bloomberg
Down Arrow Button Icon
February 11, 2025, 6:49 PM ET
X Musk sits on the shoulders of his father, Tesla and SpaceX CEO Elon Musk, as they join U.S. President Donald Trump for an executive order signing in the Oval Office at the White House on February 11, 2025 in Washington, DC. Trump is to sign an executive order implementing the Department of Government Efficiency's (DOGE) "workforce optimization initiative," which, according to Trump, will encourage agencies to limit hiring and reduce the size of the federal government.
X Musk sits on the shoulders of his father, Tesla and SpaceX CEO Elon Musk, as they join U.S. President Donald Trump for an executive order signing in the Oval Office at the White House on February 11, 2025 in Washington, DC. Trump is to sign an executive order implementing the Department of Government Efficiency's (DOGE) "workforce optimization initiative," which, according to Trump, will encourage agencies to limit hiring and reduce the size of the federal government. Photo by Andrew Harnik/Getty Images

President Donald Trump directed agencies to work with Elon Musk’s government cost-cutting effort to slash their workforces, according to a White House official, his latest move to gut the federal bureaucracy.

Recommended Video

Trump’s action orders agency heads to coordinate with Musk’s Department of Government Efficiency to “significantly reduce the size of the government” and “limit hiring to essential positions,” according to a White House fact sheet seen earlier Tuesday by Bloomberg News.

Agencies will be permitted to hire no more than one employee for every four workers leaving the government, the document said. Exceptions will be made for law enforcement, national security, immigration and public safety roles. It’s unclear if DOGE — an office within the White House — has the authority to enact mass dismissals.

Musk on Tuesday made a rare appearance in the Oval Office alongside Trump to defend his approach, which has involved young staffers fanning across agencies, obtaining access to sensitive computer systems and employee data, and in some cases shuttering offices and placing workers on leave — all in an effort to reduce the size of government.

The billionaire industrialist said without providing evidence that Treasury Department systems lacked “basic controls,” including measures preventing money going to entities on a “do-not-pay list.” 

“It’s like just a massive number of blank checks just flying out of the building,” Musk said.

Trump asserted DOGE had uncovered “billions and billions of dollars in waste, fraud and abuse,” again without substantiation. 

Musk, who has posted dozens of alleged examples of government fraud and waste on X, told reporters that “some of the things that I say will be incorrect and should be corrected.”

Trump’s plans for mass firings follow a voluntary “buyout” plan pushed by Musk, which faces a legal challenge. The latest push is also sure to trigger lawsuits from federal workers and their unions, potentially stymieing Trump’s plans to cull the government bureaucracy.

Trump said he would be willing to go to Congress, if needed, to enact some of DOGE’s recommendations. He criticized federal judges for blocking several of his actions but added he would “abide by the courts.” A federal judge in Rhode Island said Monday the White House has not fully complied with his order to release billions in federal grant money. 

The planned downsizing come after weeks of increasingly urgent warnings that employees who rejected the voluntary deferred resignation plan — allowing them to get paid through the end of September if they quit in February — could see their jobs eliminated. 

For many workers, the federal regulations governing reduction in force could be a better deal than taking the buyout. 

Those regulations say laid-off employees are eligible to receive as much as one year’s salary in severance pay, based on a formula that factors in their years of service and age.

In eliminating positions, agencies must consider the type of appointment, length of service, veterans status and performance before eliminating positions. Some employees will be dismissed, while others may have “bumping” rights into another position. Demoted employees may be able to keep their higher pay for two years, and would get first consideration to be promoted.

Musk’s Strategy

The reduction in force is the latest strategy Trump has employed — with the help of Musk — to reshape the federal government without Congress. Musk’s influence on the effort has been clear, down to the subject line of emails to employees that mimicked those received by eliminated employees of his private companies: “Fork in the Road.”

Musk has regularly chopped personnel at his companies, at times cutting so deeply that he had to almost immediately rehire staff. At Tesla, 9% of the work force was laid off in 2018, during the struggles to ramp up manufacturing of the Model 3 sedan. And last year, widespread cuts at the electric vehicle maker were even more brutal, with “Dear Employee” emails arriving in the middle of the night. 

When Musk bought Twitter, now X, in 2022 for $44 billion, he eliminated roughly 6,000 people, or nearly 80% of the staff. 

On his first day in office, Trump gave Musk a role in personnel policy, instituted a hiring freeze and sought to reclassify thousands of career civil service employees into jobs requiring a political appointment.  

Large swaths of federal workers are covered by collective bargaining agreements, and there are civil service protection rules that make layoffs more complicated than in the private sector. 

The week after offering the deferred resignation deal, the Office of Personnel Management asked agencies to identify their lowest-performing employees. The administration could also dismiss probationary employees — those serving less than one or two years — although those employees are at the bottom of the pay scale and likely would not achieve as much cost savings. 

Subscribe to Fortune Gulf Brief. Every Tuesday, this new newsletter will deliver clear-eyed, authoritative intelligence on the deals, decisions, policies, and power shifts shaping one of the world’s most consequential regions, written for the people who need to act on it. Sign up here.
About the Authors
By Hadriana Lowenkron
See full bioRight Arrow Button Icon
By Gregory Korte
See full bioRight Arrow Button Icon
By Bloomberg
See full bioRight Arrow Button Icon

Latest in Politics

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Politics

lee
Commentarystock exchanges
Texas Stock Exchange CEO: exchanges can build on Exxon’s retail model to rein in proxy advisors
By James H. LeeMay 28, 2026
6 hours ago
t
PoliticsElections
Trump’s numbers are sinking. He’s dragging his party down there with him
By Bill Barrow, Steve Peoples and The Associated PressMay 28, 2026
10 hours ago
l
PoliticsBrazil
37 million Brazilians still work Saturdays. A constitutional change is pending
By Mauricio Savarese and The Associated PressMay 28, 2026
11 hours ago
The Harvard economist behind the Education Scorecard says the ‘Learning Recession’ is more than a COVID problem—it’s at least a decade old
North AmericaEducation
The Harvard economist behind the Education Scorecard says the ‘Learning Recession’ is more than a COVID problem—it’s at least a decade old
By Marco Quiroz-GutierrezMay 28, 2026
15 hours ago
Nvidia CEO Jensen Huang
EconomyWealth
Even if every California billionaire left tomorrow, it would take 25 years for the state to lose as much as it stands to gain from proposed wealth tax
By Tristan BoveMay 27, 2026
1 day ago
Trump is building a 5,000-seat UFC cage outside the White House to celebrate the country’s 250th and his 80th birthday
PoliticsDonald Trump
Trump is building a 5,000-seat UFC cage outside the White House to celebrate the country’s 250th and his 80th birthday
By The Associated Press and Will WeissertMay 27, 2026
1 day ago

Most Popular

Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year
Success
Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year
By Preston ForeMay 21, 2026
7 days ago
The river that supplies 40 million Americans is down to 23% — and about to make a $25 million bet on one fish
Environment
The river that supplies 40 million Americans is down to 23% — and about to make a $25 million bet on one fish
By Dorany Pineda, Brittany Peterson and The Associated PressMay 27, 2026
1 day ago
Jamie Dimon said the American Dream was slipping away. JPMorgan just put $40 million on the table to fix it
Banking
Jamie Dimon said the American Dream was slipping away. JPMorgan just put $40 million on the table to fix it
By Nick LichtenbergMay 27, 2026
1 day ago
Even if every California billionaire left tomorrow, it would take 25 years for the state to lose as much as it stands to gain from proposed wealth tax
Economy
Even if every California billionaire left tomorrow, it would take 25 years for the state to lose as much as it stands to gain from proposed wealth tax
By Tristan BoveMay 27, 2026
1 day ago
Techlash grows in education: 'My daughter went to middle school and was sent home with a screen addiction in her backpack'
North America
Techlash grows in education: 'My daughter went to middle school and was sent home with a screen addiction in her backpack'
By Jocelyn Gecker and The Associated PressMay 26, 2026
2 days ago
Nvidia CEO Jensen Huang admits he criticizes everything his 42,000-plus employees show him: ‘You can’t go a day without some criticism’
Success
Nvidia CEO Jensen Huang admits he criticizes everything his 42,000-plus employees show him: ‘You can’t go a day without some criticism’
By Preston ForeMay 26, 2026
2 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.