Elon Musk’s DOGE cuts 75,000 federal jobs, over 19 lakh under fire: How much money is it saving Donald Trump?

Several US federal agencies are facing surprise mass layoffs after President Donald Trump and his aide Elon Musk launched an unprecedented plan to slash the federal workforce. With the underlying goal of cutting costs borne by the government, the Trump administration is now seeking to  slash workforces.

According to a Bloomberg report, Donald Trump has asked agency heads to work with Musk in order to “significantly reduce the size of the government” and “limit hiring to essential positions”. As per a White House fact sheet, agencies are not permitted to hire more than one employee per four people leaving the government. 

75k jobs lost already

As per a report by Semafor quoting a senior official, about 75,000 people have accepted the deferred buyout program of the Trump administration, which offers over 20 lakh federal employees to be paid till September 30 if they resign within a specified date. The ones who do not accept will not be given “full assurance” regarding the continuation of their employment.

The original deadline was February 6, but was extended amid a legal pushback. A federal judge has now allowed the programme to continue. 

The workers that have agreed to resign comprise 3.75% of the total workforce, and includes employees from agencies such as the CIA. 

The first instalment of terminations has also seen probationary employees getting fired from their roles in key departments including Education, Small Business Administration, and Energy. As per Reuters, the official termination letters cite “public interest” as the reason behind the job cuts. 

Department of Education sees firings, budget cut

The Department of Education, often a target of Trump’s criticisms, has been slashing its budget across various departments. The agency has been cancelling contracts that are deemed irrelevant and firing its employees as part of its cost-cutting measures. 

As per reports, 160 employees of the department have been handed termination letters. 

Earlier this week, the Elon Musk-led Department of Government Efficiency (DOGE) slashed nearly $1 billion in contracts, including closing an independent research arm that gathered data on student achievement.

USAid shuttered

Since January 20, when Trump took over as the 47th President of the United States, Musk and his newly formed agency has swiftly crippled a number of federal agencies. 

One of the most relevant and first of the targets was the US Agency for International Development (USAid), which Trump indicated would be shut down. 

USAid, the international humanitarian and development arm of the US government, sends billions of dollars to nations of conflict and other countries of interest. It sends $40 billion a year to these countries.

Elon Musk, who imposed a freeze on foreign aid and placed hundreds of workers on unpaid leaves, called USAid a “criminal organisation” and dismantled the organisation swiftly. 

He also claimed that USAid was sending $50 million to supply condoms in Gaza, but later took back the statement.

Trump saving $1 billion per day

President Donald Trump has claimed that Elon Musk and DOGE have found billions of dollars in savings.

“We’re talking about tens of billions of dollars that we’ve already found. … But you’re talking about maybe 500 billion. It’s crazy the numbers you’re talking about,” he was quoted as saying by The Washington Post.

DOGE in a post on X on January 29 said that the department is saving the government approximately $1 billion per day. 

“DOGE is saving the Federal Government approx. $1 billion/day, mostly from stopping the hiring of people into unnecessary positions, deletion of DEI and stopping improper payments to foreign organizations, all consistent with the President’s Executive Orders. A good start, though this number needs to increase to > $3 billion/day,” it said.

What is DOGE and what are its goals?

The Department of Government Efficiency was formed by Donald Trump after his election as the President, and is headed by Tesla CEO Elon Musk. 

The department has been put in charge of overseeing workforce reduction in the federal agencies, and began the efforts in January itself.