Elon Musk’s reputation as a bold, unrelenting entrepreneur has been cemented through his ventures spanning space, electric vehicles, and artificial intelligence. However, another defining feature of Musk’s leadership has emerged in recent years—his aggressive approach to restructuring companies through mass layoffs. From Twitter (now X) to Tesla and even the U.S. federal government, Musk’s cost-cutting measures have left thousands without jobs, stirring both controversy and admiration.

Twitter’s Drastic Transformation into X

Musk’s $44 billion acquisition of Twitter in October 2022 marked the beginning of one of the most radical workforce reductions in corporate history. With Twitter facing a reported $3 billion negative cash flow, Musk initiated sweeping layoffs, cutting more than 6,000 employees—nearly 80% of the company's workforce—by April 2023.

Musk justified the cuts by claiming that many roles were redundant, arguing that the company was plagued by inefficiencies. He famously described Twitter’s previous structure as "one person with an accelerator and nine with a set of brakes," illustrating his view that the platform had too many non-essential employees. His new vision for X emphasized a high-intensity work culture, requiring long hours and exceptional performance. However, the sudden job cuts left thousands scrambling for employment, and the tech industry watched as the move set a precedent for ruthless cost-cutting.

Tesla Employees Fear the ‘Dear Employee’ Email

Musk’s cost-cutting spree did not stop at X. In 2024, Tesla employees found themselves facing a similarly precarious fate. Over a month into Musk’s plan to slash at least 10% of Tesla’s workforce, layoffs continued to roll out in waves, leaving employees in constant anxiety. Tesla, which started the year with more than 140,000 employees, was bracing for a 20% headcount reduction, according to Bloomberg.

The uncertainty surrounding the layoffs has led to widespread unease among Tesla’s workforce. Employees have taken to describing the experience as akin to "Squid Game," the hit television series where contestants face deadly challenges in their pursuit of survival. Former Tesla sales representative Michael Minick shared his distress on LinkedIn, describing the fear of waking up every day not knowing if he still had a job. "It’s difficult to imagine the feeling of walking on eggshells every day at work, uncertain whether or not you’ll be able to pay your bills or feed your family," he wrote.

Musk’s focus at Tesla has also shifted in ways that have rattled employees. Some within the company claim that morale has suffered due to Musk prioritizing the development of a robotaxi over a $25,000 electric vehicle. This shift has led to concerns that Tesla’s original mission of making sustainable transportation accessible is being overshadowed by Musk’s latest ambitious projects.

Musk and Trump’s Federal Workforce Purge

As Musk's influence in corporate restructuring continued to grow, his cost-cutting strategies found their way into the U.S. government. After Donald Trump’s return to the presidency in 2025, Musk was appointed head of the newly established Department of Government Efficiency (DOGE), tasked with slashing the size of the federal workforce.

On a single Friday, more than 9,500 federal employees were laid off as part of Trump and Musk’s mission to shrink government operations. The mass terminations affected workers across multiple agencies, including the Departments of Interior, Energy, Veterans Affairs, Agriculture, and Health and Human Services. The Internal Revenue Service (IRS) is also expected to cut thousands of jobs in the coming weeks.

The layoffs have been particularly ruthless for employees in their probationary periods, with many losing their positions before reaching a year of service. A White House fact sheet revealed that agencies have been instructed to limit hiring, with a new rule allowing only one new hire for every four employees who leave.

DOGE’s Vision: A Leaner Government or a Workforce in Crisis?

The Department of Government Efficiency (DOGE), established by Trump and led by Musk, has been rapidly executing its mission to downsize federal operations. According to DOGE, its efforts have already saved the government approximately $1 billion per day by eliminating unnecessary positions, terminating diversity, equity, and inclusion (DEI) programs, and cutting foreign aid payments.

However, the impact of these job cuts has sparked significant debate. The Department of Education, a long-standing target of Trump’s criticisms, has already cut 160 employees and canceled several contracts. USAID, the international humanitarian and development agency, has been effectively dismantled, with Musk calling it a “criminal organization” and freezing foreign aid. This decision, which halted billions of dollars in funding for international humanitarian efforts, has been met with strong opposition both domestically and abroad.

The job cuts extend beyond immediate layoffs—Trump’s administration has introduced a deferred buyout program encouraging federal employees to resign voluntarily in exchange for continued pay until September 30. Approximately 75,000 employees have opted into the program, but those who remain face an uncertain future, as the administration has not provided “full assurance” regarding the security of their positions.

A Precedent for Corporate and Government Layoffs?

Musk’s approach to workforce reduction, whether at X, Tesla, or the federal government, has sparked intense discussions on the balance between efficiency and stability. While some praise his ability to rapidly restructure organizations and cut costs, others argue that his methods create chaos and uncertainty for workers.

His mass layoffs at X demonstrated how quickly an organization could be stripped down and restructured, for better or worse. The Tesla cuts, on the other hand, have left employees in limbo, raising concerns about long-term morale and innovation within the company. Now, his role in overseeing federal workforce reductions adds another layer to his influence, with consequences that extend far beyond corporate boardrooms.

For employees across sectors, the Musk-led layoffs serve as a stark reminder that job security is increasingly uncertain in an era of aggressive cost-cutting. Whether in the tech industry, the automotive sector, or government agencies, workers must navigate an evolving landscape where efficiency is prized above all else.