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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.

Anduril Sees Positive Outlook with Trump Administration’s Defense Strategy

Anduril, the AI-powered defense start-up, is optimistic about its position under the new Trump administration, with its president, Christian Brose, stating that the company feels positive “vibes” from the Pentagon’s recent defense shakeup. Brose, who has previously worked with Republican Senator John McCain, emphasized that Anduril’s focus on low-cost autonomous defense systems aligns well with the Trump administration’s preferences for innovation and efficiency in defense procurement.

Anduril’s Alignment with Trump’s Defense Priorities

Brose noted that Anduril’s approach to autonomous defense technology fits well with the administration’s goals to shake up the military’s traditional procurement processes. The start-up, co-founded by Palmer Luckey—who is a known supporter of Donald Trump—has built strong relationships within the current government. According to Brose, the administration’s willingness to do things differently creates significant opportunities for companies like Anduril.

In December, Anduril announced a partnership with OpenAI to deploy advanced artificial intelligence solutions for national security missions, further aligning itself with emerging defense strategies. Brose also pointed out the Pentagon’s recent $50 billion budget cut directive, speculating that this could be an effort to shift resources into new forms of military capabilities rather than merely reduce spending.

Expansion Plans and International Collaborations

Anduril, which is constructing a mass manufacturing facility for autonomous systems in Ohio, is also eyeing international growth, including potential expansion into Australia. The Australian Defence Force (ADF) is currently trialing Anduril’s AI-driven intrusion detection software at RAAF Base Darwin, where U.S. Marines are stationed.

In addition, Anduril Australia is bidding to produce solid rocket motors for the ADF’s Guided Weapons and Explosive Ordnance Enterprise. The company is also working with the ADF to produce the Ghost Shark underwater autonomous machine, with plans to ramp up production soon. Brose indicated that Anduril could expand its production footprint to other countries if the business case justifies such an investment, with Australia being a potential location.

Defense Technology and the Future of AUKUS

Under the AUKUS treaty, which involves the U.S., the U.K., and Australia, the U.S. and Britain will assist Australia in developing nuclear-powered submarines. Australia plans to spend over A$360 billion on this initiative. Brose emphasized that while autonomous systems like Anduril’s Ghost Shark can be produced faster, in larger quantities, and at a lower cost, they should complement—not replace—crewed submarines in a well-rounded defense strategy.

U.S. Adds Tencent and CATL to List of Chinese Firms Allegedly Aiding Beijing’s Military

The U.S. Department of Defense has added Chinese tech giant Tencent and battery maker CATL to its list of companies allegedly working with China’s military, a move that could further escalate tensions between the U.S. and China. The “Section 1260H” list, which designates companies that may pose national security risks to the U.S., now includes 134 firms, with Tencent and CATL being two of the most prominent additions.

Tencent, the parent company of the popular messaging app WeChat, and CATL, the world’s largest electric vehicle battery maker, both rejected the accusations. Tencent called the move a “mistake” and stated that its business would not be affected, hinting at possible legal actions. CATL similarly denied any military-related activities and stated that it was not involved in any defense operations.

While the addition to the list does not directly impose sanctions, it could tarnish the companies’ reputations and heighten scrutiny from U.S. businesses and government entities. Lawmakers have long been critical of Chinese companies’ alleged ties to the Chinese government and its military ambitions.

The Pentagon’s move also affects several other Chinese firms, including drone manufacturer Autel Robotics, shipping giant COSCO, and China’s Commercial Aircraft Corporation (COMAC). U.S. lawmakers, such as John Moolenaar, voiced support for the list, warning that these companies pose security risks.

This development comes as the U.S. continues to tighten restrictions on Chinese firms, with some lawmakers calling for further actions against companies like CATL, which has partnerships with U.S. companies like Ford. Ford plans to license CATL’s battery technology for a new plant in Michigan, raising concerns among some in Congress about the potential security implications.

China, through its foreign ministry, condemned the U.S. sanctions and urged the immediate removal of what it termed “illegal unilateral sanctions.” The U.S. is expected to face increasing pressure from both domestic and international stakeholders as tensions over these designations and broader geopolitical issues grow.