Musk’s cost-cutting team botches USAID layoff notices, forcing revisions: Report

The errors included incorrect start dates, lengths of service, and salary details—critical factors in determining federal pensions and severance pay, Reuters reported.

Termination notices sent by Elon Musk’s cost-cutting team to employees of the U.S. Agency for International Development (USAID) were riddled with errors, forcing corrections to prevent potential pension and severance pay issues, Reuters reported, citing five sources familiar with the matter.

According to a U.S. official, the Department of Government Efficiency (DOGE), led by Musk, rushed the layoff process, leading to widespread inaccuracies. “They did this so quickly that they screwed lots of stuff up,” the official told Reuters on condition of anonymity.

The State Department, which is assuming some of USAID’s functions under the Trump administration’s foreign aid overhaul, did not immediately comment on the matter.

USAID’s human resources staff—many of whom are themselves facing termination—were called back to the office to issue corrected notices, sources told Reuters. One USAID worker, speaking anonymously, said, “My letter was completely wrong. The only thing correct was my name.”

This is not the first time inaccurate termination notices have created confusion at USAID since President Donald Trump and Musk moved in February to dismantle the agency. Initially, termination dates were set for April 21 and May 30, but notices sent last week revised these dates to July 1 or September 2, according to sources.

The errors included incorrect start dates, lengths of service, and salary details—critical factors in determining federal pensions and severance pay, Reuters reported.

A worker cited by Reuters found their federal service incorrectly listed as three years shorter in one notice and six years shorter in another. “I actually have federal service dating to June 2008,” they said, adding that the layoff process appears disorganized.

A U.S. official warned that these inaccuracies could significantly affect employees’ benefits. “We’ve got people who have served for 25 years, and their notices are showing they served for only three,” the official said. “It affects their severance. It affects their future ability to retire.”

Since February, most USAID employees have been placed on administrative leave, thousands of contractors have been dismissed, and more than 5,000 programs have been shut down—disrupting humanitarian aid operations worldwide, Reuters reported.

Some staff members who requested waivers to delay termination, particularly those stationed overseas with children still in school, were mistakenly assigned incorrect end dates. Others seeking extra time to relocate faced similar errors, sources told Reuters.

The termination notices were issued under the supervision of USAID acting administrators Jeremy Lewin, a DOGE operative, and Kenneth Jackson, both overseeing the agency’s dismantling. They report to Secretary of State Marco Rubio, whom Trump appointed as acting USAID administrator.

DOGE, Musk’s government efficiency task force, claims to have saved U.S. taxpayers $140 billion as of April 2 through workforce reductions, asset sales, and contract cancellations. However, its figures have been criticized for inaccuracies. Musk has previously stated that errors in the process would be corrected when identified.

Trump, who has positioned himself as a cost-cutting reformer, tasked Musk and DOGE with eliminating government inefficiencies. However, the chaotic handling of USAID’s closure has raised concerns about the broader impact of these cuts, particularly on U.S. diplomatic and humanitarian efforts.

While USAID employees await corrected termination notices, uncertainty looms over the future of American foreign aid—an area already facing significant upheaval under the Trump administration’s policies.

(With inputs from Reuters)