In a surprising turn of events, hundreds of federal employees who were laid off during Elon Musk’s aggressive cost-cutting campaign are being asked to return to their jobs. The General Services Administration (GSA), responsible for managing federal workspaces, has set a deadline for these employees to accept or decline their reinstatement, as outlined in an internal memo obtained by the Associated Press.
Those who choose to return must report for duty by October 6, marking the end of what has essentially been a seven-month paid leave. During this period, the GSA incurred significant costs, which taxpayers ultimately bore, as it maintained leases on numerous properties that were initially slated for termination or allowed to expire.
Chad Becker, a former GSA real estate official, expressed concern about the agency’s current state, stating, “Ultimately, the outcome was the agency was left broken and understaffed. They didn’t have the people they needed to carry out basic functions.” Becker, who now represents landlords with government leases at Arco Real Estate Solutions, characterized the GSA’s operations as being in “triage mode” for several months.
This unexpected rehiring initiative is indicative of the broader struggles faced by various agencies affected by Musk’s leadership of the Department of Government Efficiency (DOGE). The GSA’s call for employees to return aligns with similar efforts at other federal agencies. For instance, last month, the Internal Revenue Service (IRS) announced that it would allow some employees who had accepted resignation offers to remain on the job. The Labor Department has also reinstated certain employees who took buyouts, while the National Park Service previously brought back personnel who had been dismissed.
As a central player in federal operations, the GSA’s workforce is crucial for managing numerous government buildings. The agency saw a mass exodus of employees starting in March, when thousands left under programs that encouraged resignations or early retirements. Additionally, hundreds more were dismissed as part of the aggressive workforce reduction strategy. Notably, while these employees did not report to work, many continued to receive their salaries.
In response to inquiries about the return-to-work notice, GSA representatives refrained from providing detailed answers, including questions about the agency’s staffing levels or the financial implications of reversing its lease termination plans. A spokesperson for the GSA did note that “GSA’s leadership team has reviewed workforce actions and is making adjustments in the best interest of the customer agencies we serve and the American taxpayers.”
Democratic lawmakers have criticized the administration’s indiscriminate approach to job and cost reductions. Representative Greg Stanton of Arizona, who serves as the top Democrat on the subcommittee overseeing the GSA, emphasized that there is no evidence suggesting that the cuts at the agency resulted in any savings. “It’s created costly confusion while undermining the very services taxpayers depend on,” he remarked.
Under the Trump administration, DOGE targeted the GSA, which employed roughly 12,000 individuals at the outset of Trump’s presidency, as part of its campaign to eliminate perceived fraud, waste, and abuse in the federal workforce. A select group of Musk’s aides, stationed at GSA headquarters—often sleeping on cots in the office—pursued a strategy to abruptly cancel nearly half of the agency’s 7,500 leases. Additionally, DOGE aimed to sell off hundreds of federally-owned buildings, hoping to generate substantial savings.
The GSA initiated this plan by issuing over 800 lease cancellation notices to property owners, frequently without informing the government tenants involved. The agency also circulated a list of numerous government properties slated for sale.
As the ramifications of these drastic measures continue to unfold, the Government Accountability Office (GAO), an independent watchdog, is currently reviewing the GSA’s management of workforce reductions, lease terminations, and planned property sales. A senior official at the GAO, David Marroni, indicated that findings from this investigation are expected to be released in the coming months.
