In recent days, several federal agencies have laid off thousands of employees, a development that marks the beginning of an internal reorganization desired by Musk and supported by Donald Trump.
In recent days, a series of layoffs have hit US federal government employees, sparking concerns and debate about the stability of the public sector and policies in place during this uncertain economic time.
The move marks the beginning of a significant internal reorganization, which may be just part of a larger trend affecting several federal government agencies.
Musk’s Plan: Over 70% of Cuts to Reduce Public Spending
Layoffs began with the Department of Veterans Affairs (VA), cutting more than 1,000 employees, mostly new and probationary hires, and with the US Forest Service planning to cut about 3,000 workers.
The purge could extend to other departments, including the Department of Education, the Small Business Administration, the Consumer Financial Protection Bureau and the General Services Administration, which runs many federal buildings.
Trump is backing his right-hand man, Musk, by confirming the need for the federal government to avoid waste and fraud, which are increasingly common in various departments.
The US government has a debt that amounts to about 36 trillion dollars.
The plan is to cut about 70% of the employees of federal agencies, inserting artificial intelligence into digital systems to award contracts and identify cuts, eliminating what he considers red tape, with updates aimed at reducing public spending.
A New Human Resources Management Policy
Many public sector experts point out that the decision to lay off so many employees during the probationary period could reflect a change in internal human resources management policies.
Amid economic and political uncertainty, government agencies are adapting to an environment that demands greater efficiency and less waste. However, the layoffs have also raised questions about the sustainability of these policies in the long term, particularly regarding the ability to attract and retain talent in federal agencies.
An estimated 280,000 public employees are on probationary periods, making them more vulnerable to the planned cuts.
These cuts, however, do not only apply to probationers, as confirmed by layoffs at the US Consumer Financial Protection Bureau, which also include temporary workers.
The cuts seek to redirect spending elsewhere, according to the Department of Veterans Affairs, which estimates a savings of about $98 million per year thanks to the layoffs in progress.
Legal challenges
Several states have moved against Washington, denouncing the “unchecked legal authority” of Musk, appointed - in their opinion - illegally and without the authorization of the US Congress.
Trump does not back down, stating that the plan, just started, plans to reduce more than 2.3 million federal civilian employees.
According to American labor laws, public employees can only be legally fired for misconduct or poor performance and, if removed without valid reason, they are entitled to a due process.
The situation is different for probationary employees, who enjoy fewer legal protections.
The new administration prefers to encourage federal departments to use probation as a “continuation of the job application process, rather than a prerogative for permanent employment.”
Musk’s initiative, headed by the new Department of Government Efficiency (DOGE), has indicated that this vision fits perfectly with new government policy. DOGE employees have been deployed to about 16 government agencies and given access to computer systems containing classified personnel and financial information information.
A New Era of Reorganization?
These rounds of layoffs could mark the beginning of a new era of reorganization and resource reductions in the federal government.
Administrators may revise hiring criteria and policies, seeking to optimise resources to adapt to increasingly volatile and changing demand. However, as the government seeks to improve its operational efficiency, it remains to be seen whether this workforce reduction will have positive or negative effects in the long term.
In the meantime, the future of the employees affected remains uncertain and many will have to seek new opportunities in a rapidly changing work landscape.
The question on many’s minds is whether these reorganisations will actually lead to a leaner and more efficient public sector, or whether the social, economic and moral costs will be too high.
Original article published on Money.it Italy 2025-02-14 16:01:18. Original title: Il piano di Musk è iniziato, migliaia di licenziamenti negli Usa. Cosa succede?
