After Mass Layoffs, Elon Musk Steps Down from White House “Efficiency” Role

The Observer
5 Min Read

Billionaire tech mogul Elon Musk has announced his departure from the Trump administration, concluding a tenure marked by aggressive budget cuts and mass layoffs within the federal government.
Musk, who served as a Special Government Employee, oversaw the Department of Government Efficiency, colloquially known as “Doge.” This agency was tasked with significantly reducing federal spending and bureaucracy.
In a post on his social media platform X, Musk confirmed his exit: “As my scheduled time as a Special Government Employee comes to an end, I would like to thank President @realDonaldTrump for the opportunity to reduce wasteful spending. The @DOGE mission will only strengthen over time as it becomes a way of life throughout the government.”
Sources close to the administration, as reported by the BBC, indicated that the White House began the process of off-boarding Musk on Wednesday night. While his departure was expected due to federal rules limiting special employees to 130 working days per year, its timing drew attention as it followed Musk’s public criticism of Trump’s latest budget bill.
Speaking to CBS, Musk described the legislation as contradictory to Doge’s mission, stating, “I think a bill can be big or it could be beautiful. But I don’t know if it could be both.” He added that the bill, which includes multi-trillion dollar tax breaks and a dramatic increase in defense spending, would substantially inflate the federal deficit, thereby undermining Doge’s work.
Musk’s time in the federal government was not without controversy. He reportedly clashed privately with senior Trump officials and faced backlash over the impact of Doge’s cost-cutting measures. The program led to the elimination or buyout of an estimated 260,000 positions from the 2.3 million-strong federal civilian workforce. Some terminations were later overturned by court orders.
A notable instance involved the mistaken dismissal of employees within the U.S. nuclear program, a blunder critics cited as evidence of the initiative’s recklessness.
Musk, who initially pledged to slash $2 trillion from the federal budget, later revised that figure to $150 billion. The scope of Doge diminished in parallel with this reduction in ambition, as political tensions and public scrutiny intensified. “Doge is just becoming the whipping boy for everything,” Musk told the Washington Post in Texas. “Something bad would happen anywhere, and we would get blamed for it even if we had nothing to do with it.”
Musk’s departure also coincides with challenging developments within his business empire. Tesla recorded a 13% drop in vehicle deliveries in the first quarter of 2025, marking its steepest decline in history. While its stock price, previously down by nearly 45%, has partially recovered, it remains 10% below prior highs.
During a recent earnings call, Musk signaled a shift in his focus: “The time I allocate to Doge will drop significantly. I will be allocating far more of my time to Tesla.”
Public outrage over Musk’s political role has led to real-world actions, including protests at Tesla dealerships, damage to charging stations, and vandalism of vehicles. In response, U.S. Attorney General Pam Bondi issued a warning that “Acts of vandalism will be treated as domestic terrorism.”
Despite the turbulence, Musk has affirmed his commitment to leading Tesla for the foreseeable future, stating at an economic forum in Doha, Qatar, “I am committed to being the leader of Tesla for the next five years.”
He has also vowed to scale back his political involvement, having reportedly spent nearly $300 million to support Trump and Republican candidates in 2024.
The continued influence of Doge on federal policy remains uncertain, but Musk maintains that its legacy will endure, even as he steps away from his role in Washington.

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