Hundreds of federal employees who were laid off during Elon Musk’s extensive cost-reduction initiative are now being invited to return to their positions after the General Services Administration (GSA) acknowledged that significant staff cuts had rendered the agency “broken and understaffed.” According to an internal memo, the Associated Press reported that the GSA has informed the affected employees—who are responsible for managing federal offices and leases—that they have until the end of the week to either accept or decline their reinstatement. Those who choose to return must report back by October 6, effectively resuming work after a seven-month paid leave that, in certain instances, has cost taxpayers millions as leases on unoccupied properties continued to accrue. The reductions originated from directives issued by Elon Musk’s Department of Government Efficiency (DOGE), which identified the GSA as an overstaffed bureaucracy in need of reform. Starting in March, thousands of GSA employees opted for early retirement, accepted buyouts, or were terminated. DOGE aimed to cancel nearly half of the agency’s 7,500 leases and liquidate federal properties, estimating potential savings of up to $460 million. However, the magnitude and rapidity of the cuts quickly became unmanageable, with GSA headquarters staffing reduced by 79%, portfolio managers by 65%, and facilities managers by 35%. Amid the turmoil, at least 131 leases expired without the government vacating the properties, resulting in substantial penalties. Of the more than 800 leases initially planned for termination, nearly 500 have since been retained. Current savings projections have now diminished to approximately $140 million. The GSA, established in the 1940s to streamline the management of federal buildings, supervises thousands of offices nationwide.
