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    Trump’s buyout plan draws 75,000 resignations, but misses target

    • February 13, 2025
    • admin

    President Donald Trump’s voluntary resignation programme for federal employees has seen approximately 75,000 workers accepting the offer, as per a Bloomberg report.

    The number falls short of the White House’s original goal of reducing the workforce by 5% to 10%.

    The final figure represents about 3.3% of the 2.3 million civilian federal workforce, prompting concerns that the administration will move forward with forced layoffs to meet its objectives.

    The buyout programme, officially titled “Fork in the Road,” was temporarily halted due to legal challenges but was reinstated by a federal judge in Massachusetts on Wednesday.

    The decision has allowed the administration to proceed with its workforce reduction strategy, with the resignation window closing at 7 pm ET that same day.

    While some employees opted for the eight-month severance package, many others remained hesitant amid warnings from Democrats that the government’s funding beyond March 14 remains uncertain.

    Musk-backed cuts reshape workforce

    The initiative was spearheaded by Tesla CEO Elon Musk’s Department of Government Efficiency, which Trump has empowered to cut spending and streamline operations.

    In a move that signals an escalation of the administration’s push to shrink federal employment, Trump signed an executive order on Tuesday directing agency heads to initiate “large-scale reductions in force.”

    The General Services Administration (GSA), which oversees the federal government’s real estate portfolio, has already begun layoffs, according to Reuters.

    Other agencies could soon follow, particularly as Trump’s administration has indicated that voluntary resignations alone will not be enough to meet its downsizing objectives.

    The programme’s rollout has sparked criticism from federal employee unions, which initially sought to block it in court.

    The Massachusetts judge dismissed their challenge, ruling that the unions lacked standing to sue and that the court lacked jurisdiction over the matter.

    This decision paved the way for the administration to proceed with the buyouts and, potentially, further workforce reductions.

    New rules raise job fears

    For those federal employees who declined the buyout, the administration has introduced a series of new workplace reforms aimed at increasing efficiency and accountability.

    These reforms include stricter in-office attendance policies and enhanced performance standards, with employees expected to be “reliable, loyal, and trustworthy” in their work.

    While proponents of the changes argue they will create a more streamlined and effective government, critics have raised concerns that the measures could be used to justify further job cuts.

    The uncertainty surrounding government funding beyond March 14 has added to the anxiety, as the administration has not yet detailed how it plans to address potential shortfalls if Congress fails to reach a budget agreement.

    Will layoffs close the gap?

    Despite the voluntary resignations, the federal workforce remains significantly larger than it was before President Joe Biden’s term, during which it grew by 6.3% due to pandemic-related hiring.

    A 3.3% reduction is not enough to fully offset this growth, leading to speculation that forced layoffs may be necessary to meet Trump’s original target.

    With the administration’s emphasis on reducing bureaucracy and cutting costs, further downsizing efforts appear imminent.

    Agencies that do not meet internal workforce reduction benchmarks could face deeper job cuts, putting thousands of additional federal employees at risk.

    The post Trump’s buyout plan draws 75,000 resignations, but misses target appeared first on Invezz


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      Popular Topics
      • Moody’s downgrades US credit rating: what to expect of markets on Monday?
      • Goldman Sachs trims oil forecast amid rising Iranian supply expectations
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