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

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.

Dayforce Shares Drop 10% After Q2 Revenue Forecast Misses Expectations Despite Q1 Beat

Dayforce Inc. (DAY.N) saw its shares drop 10% on Wednesday after issuing a second-quarter revenue forecast that fell short of Wall Street expectations, despite reporting a better-than-expected Q1 performance.

The HR software provider, formerly known as Ceridian, expects Q2 revenue between $454 million and $460 million, below the $465.5 million consensus estimate compiled by LSEG. The company’s full-year revenue guidance of $1.93–$1.94 billion was roughly in line with expectations.

The cautious outlook contrasts with that of larger competitor ADP, which recently raised its annual revenue forecast on the back of strong enterprise demand and recent strategic acquisitions.

Dayforce posted Q1 revenue of $481.8 million, beating estimates of $476.7 million. Excluding float revenueinterest earned from holding funds before disbursement—the company reported $426.5 million in core revenue. Adjusted earnings for the quarter were 58 cents per share, above the expected 55 cents.

In February, Dayforce announced a 5% workforce reduction, aiming to cut annual costs by $65 million as part of its operational streamlining.

The company provides cloud-based payroll, workforce, and human capital management solutions to enterprise clients worldwide. Despite its strong Q1 results, the lower Q2 guidance may signal softer near-term demand or macroeconomic caution impacting deal flow and client expansion.