The Trump administration has directed federal agencies to prepare for major layoffs, intensifying its campaign to shrink government operations. At a Cabinet meeting, Elon Musk outlined ambitious cost-cutting measures, warning that failure to reduce spending could push the country toward financial instability.
A newly issued memorandum instructs federal agencies to submit workforce reduction plans by March 13. Signed by White House budget director Russell Vought and acting Office of Personnel Management head Charles Ezell, the directive signals a significant escalation in the administration’s downsizing efforts.
While previous cuts primarily targeted probationary employees, this new round is expected to affect veteran civil servants across multiple departments.
During the same meeting, Musk, leading the Department of Government Efficiency (DOGE), announced his goal to cut $1 trillion from the federal budget this year. The billionaire entrepreneur warned that without drastic reductions, the U.S. risked “de facto bankruptcy,” according to those present at the discussion.
Federal Agencies Face Restructuring Under New Directive
The memorandum requires agencies to draft proposals for “significant reductions” in staffing. While no specific targets were set in the document, officials have already outlined some projected cuts.
At the Cabinet meeting, Environmental Protection Agency (EPA) Administrator Lee Zeldin stated that his agency could reduce its workforce by up to 65%.
The Department of the Interior is also preparing for substantial layoffs, with sources indicating that the U.S. Fish and Wildlife Service and the Bureau of Indian Affairs could see workforce reductions of 10% to 40%.
These layoffs would add to the 100,000 civilian federal workers already dismissed or bought out since Trump took office, according to internal estimates.
While the administration has framed these cuts as a way to eliminate inefficiencies, analysts warn they could disrupt essential government services, including environmental oversight, public land management, and regulatory enforcement.
Musk’s Role in Cost-Cutting and Its Wider Implications
Musk, despite DOGE not being a Cabinet-level entity, has taken a leading role in identifying inefficiencies across the government. At the meeting, he outlined a strategy to review and eliminate “unnecessary” contracts, while working with the General Services Administration (GSA) to dispose of unneeded federal properties.
One measure under review is terminating 1,100 office leases by the end of the year. A controversial email sent to federal employees last weekend, reportedly at Musk’s direction, required workers to submit weekly reports detailing their accomplishments. Musk warned that failure to comply could result in termination.
According to reports, some agencies advised employees to ignore the directive, causing confusion over its legitimacy. Musk later defended the measure, claiming it was intended to confirm that government salaries were being paid to “actual workers” and suggesting, without evidence, that some paychecks were going to deceased employees.
