Federal Employees Recalled After Mass Layoffs Amid Cost-Cutting Efforts

Fri Dec 05 2025 22:22:29 GMT+0200 (Eastern European Standard Time)

The General Services Administration has initiated the recall of hundreds of employees previously laid off due to drastic measures under Elon Musk's initiative. This reversal raises concerns about the agency's ability to function efficiently after significant staffing reductions.

After months of job cuts initiated by the Department of Government Efficiency (DOGE) under Elon Musk, the General Services Administration is now asking hundreds of federal employees to return to work. This decision highlights the turmoil and instability within the agency, which had aimed to slash costs but has faced criticism for its execution. The swift layoffs left the agency understaffed and struggling to manage its responsibilities, prompting the recall of former employees as the cost implications of these cuts and resulting lease issues become evident.

MIAMI (AP) — In a significant about-face, the General Services Administration (GSA) has requested that hundreds of federal employees who were laid off during Elon Musk's sweeping cost-reduction efforts return to their positions. This drastic measure aims to address the agency's mounting operational challenges following the loss of a considerable portion of its workforce.

According to an internal memo obtained by The Associated Press, these employees have until the end of the week to decide whether to accept their reinstatement offers, with a requirement to report for duty by October 6. During their absence, many of these workers continued to receive their salaries while the GSA incurred additional costs for properties that were supposed to terminate their leases.

“Ultimately, the outcome was the agency was left broken and understaffed,” remarked Chad Becker, a former GSA real estate official. Becker pointed out that the rapid downsizing was symptomatic of a rushed strategy that lacked adequate foresight.

Rehiring Amidst Agency Challenges

Established in the 1940s to manage federal workplaces, GSA's current struggle reflects a broader trend seen across multiple agencies, including recent moves by the IRS and the National Park Service to bring back laid-off staff.

Starting in March, thousands of GSA employees left the agency as part of a series of voluntary resignation and retirement programs alongside abrupt dismissals aimed at reducing federal workforce numbers. However, this left GSA grappling with the consequences, as essential operations were halted due to a lack of personnel.

While GSA did not comment extensively on the specific recall notice, a spokesperson indicated that leadership was adjusting workforce actions for the sake of the taxpayer and the agencies they serve.

Opposition from Democrats has been vocal regarding the inefficacy of the Trump administration's aggressive cost-cuttingStrategy. Congressman Greg Stanton criticized the layoffs, stating there’s no evidence they resulted in actual savings, merely creating confusion and undermining services.

Assessment of Cost-Cutting Measures

The Department of Government Efficiency (DOGE), identified as a key player in the GSA's restructuring, originally aimed to alleviate what it termed waste and fraud in government operations.

Controversial initiatives included canceling nearly half of its portfolio’s leases and selling off government buildings, leading to significant backlash and subsequent policy rollbacks. Recent estimates reveal that projected savings have sharply decreased from nearly $460 million to approximately $140 million as lease terminations and layoffs failed to yield anticipated fiscal benefits.

According to a federal official, GSA’s staff reductions have severely impacted operations, revealing inadequacies that have led to properties remaining unoccupied while lease payments continued, leaving the agency exposed to considerable financial liabilities.

As scrutiny intensifies, the Government Accountability Office is expected to provide insights into GSA's management decisions and their fallout, with findings forthcoming in the next few months.

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Foley reported from Iowa City, Iowa.