Trump and Musk Begin "Bloodbath" Layoffs, Cutting 97% of USAID Staff

Massive restructuring of USAID aims to reduce workforce by over 90% / Reuters

Former U.S. President Donald Trump and Tesla CEO Elon Musk have launched a significant overhaul of the U.S. Agency for International Development (USAID), which will see a drastic reduction in its staff and operations. According to reports from The New York Times and other outlets on February 6, 2025, only 3% of the agency's current workforce will remain, with the remaining 97%—approximately 9,710 employees—being laid off. This marks the beginning of a major reorganization effort led by Musk, who now heads the U.S. government's Office of Government Efficiency (DOGE).

Major Cuts and Layoffs at USAID: What Does This Mean?

In a meeting with USAID leadership, the Trump administration revealed plans to reduce the number of employees at the agency to a mere 290, which includes specialists in health and humanitarian assistance. The remaining staff members will be stationed in regions such as Africa and Asia, with a few local staff members potentially staying on. The move to downsize USAID is part of a broader strategy to cut costs and shift responsibilities for U.S. foreign aid programs to other government departments, notably the U.S. Department of State.

The controversial restructuring plan, which has already sparked significant pushback from Democrats, follows the Trump administration's concerns about the inefficiency of USAID and its “NGO-like” organizational culture. According to reports, President Trump and Musk have advocated for dismantling the agency altogether and transferring its functions to the State Department. The move has been heavily criticized by Democratic lawmakers who argue that such drastic cuts are illegal, given that USAID was established by the Foreign Assistance Act of 1961.

What is USAID and What Does It Do?

USAID has played a critical role in delivering foreign aid and development assistance for over six decades. With a workforce of around 10,000 employees and an annual budget of $42.8 billion, USAID is responsible for providing billions in aid across the world, supporting areas such as health, governance, humanitarian efforts, and food security. Among its most significant contributions are its operations in regions affected by conflict and poverty, particularly in countries like Ukraine, Jordan, Ethiopia, and Congo.

In the fiscal year 2024, USAID allocated approximately $32.5 billion in foreign assistance. This funding was split across various sectors, with a quarter directed toward humanitarian aid, another quarter focused on health and population issues, and significant portions aimed at governance and administrative costs. The largest recipient of U.S. foreign aid from USAID last year was Ukraine, which received a substantial $5.4 billion to assist in its ongoing war with Russia. Other countries, such as Jordan and Ethiopia, also received considerable financial support to address regional crises, including food insecurity, refugee assistance, and conflict resolution.

Trump and Musk’s Criticism of USAID

Both Trump and Musk have been vocal critics of USAID, with the former President accusing the agency of being run by "radical left-wing lunatics" and promising to eliminate them. In his remarks, Trump emphasized that the agency had been mismanaged and promised to overhaul it significantly. Musk, who has taken on a leading role in the restructuring effort, referred to USAID as a "criminal organization" and a "haven for radical Marxists." He criticized the agency, stating that it was "infested with bugs" and needed to be eradicated entirely for meaningful reform to take place.

The two men argue that USAID’s operations are wasteful and fail to serve U.S. interests, echoing broader Republican concerns about the efficiency of government spending on foreign aid. According to Musk, the only solution to the agency's issues is to completely eliminate its current structure and rethink the way international development assistance is managed.

The Backlash from Democrats and Critics

The restructuring of USAID has not been without significant backlash, particularly from Democratic lawmakers who view the move as a dangerous attack on vital international aid programs. Critics argue that slashing USAID's budget and workforce will have dire consequences for global development, particularly in war-torn regions and developing nations where U.S. aid plays a crucial role in saving lives and maintaining stability. Some also point out that reducing the agency's workforce could lead to the loss of thousands of American jobs and undermine U.S. credibility on the world stage.

Despite the opposition, the Trump administration and Musk have continued to push forward with their plans, which they claim will streamline the operations of U.S. foreign aid and refocus resources on more strategic initiatives. However, as the restructuring progresses, it remains to be seen what the long-term impact of this drastic move will be on U.S. foreign policy, global humanitarian efforts, and the international community’s perception of the U.S.'s commitment to global development.

Conclusion: The Future of USAID and U.S. Foreign Aid

The major downsizing of USAID marks a significant shift in the U.S.'s approach to foreign aid and international development. While proponents of the restructuring argue that it will lead to a more efficient and effective system, critics worry that it will harm vulnerable populations around the world and undermine U.S. soft power. With tensions continuing to rise between the Republican-led administration and Democrats, the fate of USAID remains uncertain, and the full effects of this massive overhaul are still unfolding.