Trump and Musk accelerate federal workforce layoffs: Legal battles loom

Elon Musk speaks as US President Donald Trump looks on in the Oval Office of the White House in Washington DC. (Image: AFP)

Billionaire Elon Musk’s team has initiated sweeping layoffs of US federal employees, as the Trump administration races to shrink the government’s civilian workforce. The Office of Personnel Management (OPM), now run by Musk allies, confirmed Wednesday that reductions in force (RIFs) have begun and are overwhelming the agency, according to The Washington Post.

The White House is considering deep budget cuts across government agencies, with reductions ranging from 30% to 40% in many departments. However, agencies favoured by Trump, such as the Department of Defense and Homeland Security, are largely exempt. The administration’s hiring freeze has stalled recruitment, even in critical sectors like the Department of Veterans Affairs (VA), delaying essential hires for healthcare professionals, The Washington Post reports.

Layoffs have already led to widespread confusion, with federal employees receiving erroneous termination emails. At the Consumer Financial Protection Bureau and Small Business Administration, workers were notified of their termination, only to later receive conflicting messages stating the emails were sent in error before being let go again. DOGE’s hiring oversight has also disrupted recruitment by requiring political appointee approval for new hires, further slowing agency operations.

The executive order and mass layoffs have drawn fierce legal opposition from labour unions and federal employees. Some experts argue that Trump’s administration could face injunctions for violating workforce protections. Additionally, DOGE’s ability to bypass traditional hiring and firing protocols is under scrutiny, raising concerns about executive overreach and government stability.

Despite administration claims of boosting efficiency, the layoffs have created operational backlogs, particularly in service-driven agencies. The VA, which provides direct medical care to veterans, has seen delays in processing new hires due to hiring freezes. Meanwhile, broader government functions like economic oversight, environmental protection, and social services are expected to suffer from workforce reductions.

As Musk and Trump push forward with aggressive staffing cuts, legal battles and agency resistance are expected to shape the outcome. While the administration claims these moves will reduce government inefficiency, critics argue they could significantly undermine essential public services. Even with mass layoffs, experts note that cutting 25% of the workforce would only reduce federal spending by 1%, making the economic impact of these reductions minimal, The Washington Post concludes.