HomeWorldAs U.S. government shutdown looms, Trump warns of mass layoffs

As U.S. government shutdown looms, Trump warns of mass layoffs

The U.S. faces a shutdown after Senate funding talks collapsed, with President Trump warning of mass federal layoffs. Around 150,000 staff already exiting, raising fears of long-term workforce losses and service disruption.

October 01, 2025 / 12:32 IST
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Trump warns of federal layoffs
Trump warns of federal layoffs

The United States is on the brink of a government shutdown after the Senate failed to extend funding past midnight on Tuesday, raising fears of widespread layoffs across the federal workforce.

The 55–45 Senate vote fell short of the 60 required to advance the stopgap measure, virtually guaranteeing that government operations will grind to a halt on Wednesday. Essential services such as law enforcement and air traffic control will continue, but most other agencies will scale back, disrupting services from routine food inspections to the release of the monthly jobs report.

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President Donald Trump escalated tensions by threatening further cuts to federal jobs if the shutdown proceeds. “Well, the Democrats want to shut it down. So when you shut it down, you have to do layoffs. So we’d be laying off a lot of people that are going to be very affected, and the Democrats, they’re going to be Democrats,” he said at the White House.

The warning comes amid the largest exodus of government staff in eight decades. More than 150,000 workers are already due to leave federal payrolls this week under buyout schemes, while tens of thousands more have been dismissed since the start of the year. Critics say the looming shutdown, combined with Trump’s threats, risks accelerating a “brain drain” that will weaken public services long after funding is restored.