In an unprecedented move, the U.S. federal workforce has experienced significant reductions under President Donald Trump's second term. April marked the fourth consecutive month of cuts, with federal civilian employment, including postal workers, decreasing by 9,000. Since the beginning of 2025, the government has seen over 23,000 non-postal federal jobs eliminated, totaling a drop of 26,000 for the year, as reported by the New York Post. This aggressive downsizing effort is the most robust since Ronald Reagan's presidency in the 1980s.
Elon Musk, CEO of Tesla and head of the newly formed Department of Government Efficiency (DOGE), has been at the forefront of these cuts. The Trump administration has touted government downsizing as a top priority, aiming to streamline operations and reduce perceived governmental bloat. With Musk's business acumen, DOGE has not disclosed detailed internal figures, but the White House revealed that around 200,000 federal workers have been laid off since January 2025. These numbers reflect job eliminations across various departments and agencies.
In addition to layoffs, the administration has implemented deferred retirement packages, with over 75,000 federal employees agreeing to exit later in the year. These strategies aim to reduce staff gradually, avoiding immediate disruptions in government services. Taking into account layoffs, early retirements, and buyouts, more than 260,000 workers have left federal service in 2025, which is over 10% of the 2.4 million federal civilian workforce as of the end of 2024.
Online betting platform Kalshi predicts that job cuts could rise to 300,000 by the close of 2025. If this estimate holds true, it would surpass the largest first-year reduction of federal employees on record since 1950, previously held by President Dwight D. Eisenhower, who cut 195,000 jobs in 1953. The Trump administration defends these actions as steps towards fiscal responsibility and curtailing government overreach, asserting the need to address inefficiencies that cost taxpayers billions annually.
While the government downsizing has garnered support from Trump's conservative base, critics worry about potential service disruptions. However, officials maintain that core functions will remain intact. Musk's approach has been described as applying "business logic" to cut needless bureaucracy, receiving commendation from the White House for his "bold but overdue" leadership. Analysts suggest that these reductions could significantly alter the size and scope of the federal government for years to come, with departments expected to consolidate and realign with reduced staffing levels through the remainder of the year.