Elon Musk Exits DOGE Role After Cutting 260,000 Federal Jobs and $175B

Elon Musk has stepped down as the U.S. government’s cost-cutting czar after 130 days. The Tesla CEO confirmed his departure

Written by: Arslan Butt • Thursday, May 29, 2025 • 2 min read

Quick overview

Elon Musk has resigned as the U.S. government's cost-cutting czar after a legally mandated 130-day term.
During his tenure, Musk claimed to have saved $175 billion, a figure that has been disputed by various sources.
His cost-cutting measures resulted in the reduction of approximately 260,000 federal jobs, raising concerns and legal challenges.
Musk expressed that his involvement in politics may have negatively impacted his core businesses, including Tesla.

Elon Musk has stepped down as the U.S. government’s cost-cutting czar after 130 days. The Tesla CEO confirmed his departure in a May 29 X post, thanking President Donald Trump “for the opportunity to waste less.”

Musk’s short tenure—legally capped at 130 days for Special Government Employees—comes as scrutiny grows over his aggressive cost-cutting and its implications.

Despite initial plans to cut $2 trillion from the federal budget, DOGE claims to have saved $175 billion, a figure disputed by multiple outlets. Reports say these savings are exaggerated, with errors and miscalculations. DOGE has reduced the federal workforce by 12%, cutting around 260,000 jobs through layoffs, buyouts and early retirements.

DOGE’s Controversial Impact

While DOGE was supposed to cut waste, critics say it’s caused legal challenges and public concern. A 14-state lawsuit claims Musk and DOGE violated the Constitution by accessing government systems, firing federal employees and canceling contracts.

Musk also trashed the $3 trillion tax break package passed by House Republicans on May 22, saying it would undermine DOGE and make the deficit worse. Even though he’s out, Musk posted on X that DOGE will “only get stronger over time as it becomes a way of life throughout the government.”

Key points:

Claimed savings: $175 billion, disputed
Jobs cut: 260,000 federal jobs
Legal challenges: 14-state lawsuit against Musk and DOGE

Musk on His Political Involvement

In a May 28 interview with Ars Technica, Musk said he’d “spent too much time on politics” which some say has hurt his core businesses, including Tesla. He said his government role wasn’t as time-consuming as the media makes it out to be, but the public perception is real.

After Musk announced in the Q1 report he would step back from DOGE, Tesla shares went up 5% in after hours trading despite the company’s 80% drop in net income. As of March 31, Tesla had 11,509 Bitcoin, worth around $1.24 billion.

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ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.