DOGE Puzzle: Musk Wants to Cut 10% of Jobs, but Only 1% of U.S. "Civil Servants" Accept Buyout Offers
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DOGE Puzzle: Musk Wants to Cut 10% of Jobs, but Only 1% of U.S. "Civil Servants" Accept Buyout Offers
Now only over 20,000 employees—about 1% of the total U.S. federal government workforce—have signed resignation agreements to accept the so-called deferred retirement "buyout program," which offers approximately eight months' worth of salary compensation from the government.
Navigating Web3 tides with focused insightsBy Li Dan, Wall Street Horizon
More than two years ago, shortly after Musk acquired Twitter and fired over 4,000 people within just 20 days, he is now leading the "Department of Government Efficiency" (DOGE) with an even more astonishing goal: cutting hundreds of thousands of federal government employees within months. However, recent reports suggest this target may be difficult to achieve.
On Tuesday, February 4, Bloomberg reported that Trump and Musk hope to potentially reduce the number of federal employees by as much as 10%. Currently, however, only slightly over 20,000 workers—less than 1% of all federal government employees—have signed resignation agreements accepting the government's recently offered deferred retirement "buyout program."
According to the report, officials familiar with the data said the number signing up for these voluntary departure agreements continues to rise daily. The government expects a surge in resignations by Thursday, February 6—the deadline for participation in the deferred retirement program. Even so, achieving the targeted 10% reduction remains unlikely. The federal government employs nearly 2.3 million civilian workers, about half of whom may not qualify for the buyout program, including defense- and intelligence-related personnel, postal workers, law enforcement officers, and those in certain sensitive positions.
The Trump administration launched the deferred retirement program last week. According to CCTV, on January 28 local time, the U.S. Office of Personnel Management (OPM), which oversees human resources for the federal government, sent an email to federal employees announcing that those who voluntarily leave their positions will receive approximately eight months' worth of salary compensation. Employees must make their decision by February 6. Under this scheme, departing employees will continue receiving pay and benefits through September 30, along with reduced work responsibilities during that period.
Musk later posted on social media platform X explaining that employees who accept the "buyout program" and resign voluntarily will receive eight months of severance pay, during which they can do anything they wish—including seeking new employment. The OPM website published a list of frequently asked questions clarifying that recipients may take on new jobs during the eight-month severance period, provided there is no conflict with their current federal duties, and they cannot sue the government.
Wall Street Horizon previously noted that the White House has required federal employees to choose between returning full-time to the office or resigning under the "buyout program." White House officials stated that mandating a return-to-office policy could lead 5%-10% of federal workers to resign, and they expect the policy could save up to $100 billion annually. However, some lawmakers have warned that Trump might change his mind at any time, meaning employees who accept the buyout may not ultimately receive the promised payments.
Federal employee unions remain skeptical of the "buyout program," questioning whether participants will actually receive compensation. The National Treasury Employees Union (NTEU), representing workers from 36 federal agencies and offices, believes the program is designed to lure or pressure employees into resigning. The American Federation of Government Employees (AFGE), the largest union representing U.S. government workers, argues the plan aims to "turn the federal government into a toxic environment where employees cannot stay even if they want to."
Last week, CCTV reported that on Wednesday AFGE filed a lawsuit in U.S. federal court in Washington, D.C., aiming to block Trump’s plan to reclassify up to 50,000 federal workers and make them easier to fire. The lawsuit claims Trump lacks authority to strip federal employees of protections against arbitrary dismissal without formal rulemaking procedures.
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