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DOGE-Backed Software Revamp to Accelerate U.S. Government Layoffs Amid Musk’s Exit

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A powerful new software tool developed under Elon Musk’s Department of Government Efficiency (DOGE) is set to accelerate mass layoffs across the U.S. federal workforce, just as Musk steps back from the initiative, Reuters reported in an exclusive on Thursday.

The program, a modernized version of the decades-old Pentagon “AutoRIF” (Reduction in Force) system, has been rebranded as the Workforce Reshaping Tool. It promises to drastically reduce the time it takes to process mass layoffs by automating tedious, error-prone manual HR processes used across federal agencies.

With over 260,000 federal workers already laid off, retired early, or bought out since President Trump’s return in January, the system is expected to play a key role in what critics have called an aggressive federal downsizing strategy. Agencies like the Department of Veterans Affairs and the IRS are preparing cuts of up to 80,000 and 40% of their staff respectively.

The revamped software enables bulk data upload, real-time collaboration, and rapid analysis of eligibility for dismissal based on factors like seniority, veteran status, and performance. This is a significant improvement over the old version, which allowed only one user at a time and required manual entry of individual personnel records.

Though DOGE claims to have saved $160 billion through cost-cutting measures, few specifics had been disclosed until now about how technology was aiding that effort. The Workforce Reshaping Tool appears to be the first tangible result of DOGE’s mandate.

The timing is critical: the software is being deployed just as legal challenges and employee reinstatements highlight growing concerns over mistakes and fairness in the layoff process. Experts warn that while automation improves speed, it may amplify systemic flaws.

“If you automate bad assumptions into a process, the scale of the error becomes far greater,” said Don Moynihan of the University of Michigan.

Despite Musk’s planned step back to focus on Tesla and his other companies, analysts believe the automation project he set in motion will continue independently — reshaping the future of federal employment.

Trump Explores Privatizing U.S. Postal Service Amid Financial Challenges

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President-elect Donald Trump has expressed a growing interest in privatizing the U.S. Postal Service (USPS), according to a Washington Post report on Saturday. The report, citing insiders familiar with the discussions, revealed that Trump views the USPS’s financial struggles as a justification for removing its government subsidy.

The USPS, which has incurred losses exceeding $100 billion since 2007, reported a $9.5 billion net loss for its fiscal year ending September 30, marking a $3 billion increase from the previous year. Much of the loss was attributed to higher non-cash workers’ compensation expenses.

Trump reportedly discussed privatization plans with Howard Lutnick, his nominee for commerce secretary, during a meeting at Mar-a-Lago. Additionally, officials expected to join the Department of Government Efficiency under Elon Musk and Vivek Ramaswamy have also explored potential USPS reforms, sources revealed.

A USPS spokesperson highlighted efforts to cut costs, including reducing 45 million work hours and trimming $2 billion in transportation expenses over the past three years. They also stated that regulatory approval for modernizing the postal network could save the agency $3.6-$3.7 billion annually.

Karoline Leavitt, a spokesperson for Trump’s transition team, emphasized that no policy decisions are final until officially announced by Trump or his representatives.

Privatization of the USPS could have significant repercussions, particularly for the U.S. e-commerce sector and rural communities. Amazon, a major USPS partner for last-mile delivery, and small businesses reliant on affordable shipping options could face disruptions. As the only carrier delivering to remote areas, USPS plays a critical role in serving rural Americans.

Amazon, which announced a $1 million donation to Trump’s inaugural fund, may also face further scrutiny. The Trump transition team is reportedly reviewing USPS contracts with Oshkosh and Ford for electrifying its delivery fleet, potentially seeking to unwind these agreements.

The USPS’s financial struggles have been a contentious issue for years. In 2020, Congress authorized a $10 billion loan for the agency as part of a $2.3 trillion coronavirus relief package, a measure Trump threatened to veto.

If pursued, privatization would represent one of the most significant shifts in USPS’s history, raising questions about the future of affordable and universal mail delivery in the United States.