Musk Ally Predicts Major Government Staff Reductions

Following Donald Trump’s inauguration, the US federal government is set to undergo significant staff reductions. This was stated by entrepreneur and head of the DOGE, Vivek Ramaswamy, as reported by Bloomberg.

He believes that “federal contractors exploit the government,” leading to “massive waste, fraud, and abuse.” As part of the efficiency drive, some agencies will be completely eliminated, Ramaswamy noted.

“We expect massive reductions in areas of the federal government that are bloated, as well as among federal contractors and others who overcharge the government,” he added.

Ramaswamy did not specify particular contractors, and it remains unclear how the efficiency campaign will be structured.

Previously, the leadership of DOGE, which includes billionaire Elon Musk, announced plans to implement necessary reforms by July 4, 2026 — the 250th anniversary of the United States’ declaration of independence.

The new department will collaborate with the White House Office of Management and Budget in carrying out its activities.

While working at DOGE, Musk and Ramaswamy will refrain from discussions and decisions that personally affect them. According to Bloomberg, SpaceX holds over $15 billion in federal contracts.

Both DOGE leaders have previously expressed opposition to government regulations. Ramaswamy opposed the implementation of CBDC and condemned the government for sanctions against the crypto mixer Tornado Cash.

Musk supported Senator Mike Lee’s call to abolish the Federal Reserve System.