Billionaire Elon Musk, known for his takeover tactics at Twitter, has now brought his cost-cutting initiative to the federal government, resulting in a controversial email sent to millions of federal employees. The Department of Government Efficiency, run by Musk, is implementing sweeping workplace changes, demanding loyalty from employees, and offering exit packages to achieve significant budget savings.
Musk’s team of loyalists, including individuals from his companies like Tesla and SpaceX, are now advising federal agencies on cost-cutting measures similar to those executed during the Twitter takeover. The email sent by the Office of Personnel Management, titled “Fork in the Road,” mirrored a previous message sent to Twitter employees during Musk’s buyout.
The federal cost-cutting initiative has seen the elimination of diversity programs and the implementation of strategies to assess employees’ technical capabilities and loyalty. Musk’s aggressive tactics, including reducing real estate footprints and cutting diversity initiatives, have caused controversy and resistance among federal workers.
While Musk’s approach has led to significant cost savings in some cases, particularly at Twitter, the long-term effects on employee morale and overall business success remain to be seen. Concerns about the impact on federal workforce diversity and employee engagement have prompted some workers and experts to seek guidance from former Twitter employees who experienced similar changes under Musk’s leadership.
As Musk continues to push for efficiency and cost reductions within the federal government, employees and stakeholders are bracing for further changes and potential disruptions in the workplace.
By Theodore Schleifer, Ana Swanson, and Maureen Farrell.
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