Will a third of the US government be fired?
What's the story
Elon Musk and US President-elect Donald Trump have pitched a bold government reform plan.
The duo are setting up a "Department of Government Efficiency" (DOGE) to simplify federal work.
As part of this plan, Trump is appointing Musk as the "secretary of cost-cutting" with an aim to slash bureaucratic expenses by $2 trillion. This amount is roughly one-third of the current spending.
A lot of bureaucrats might lose their jobs.
Audit plan
DOGE's mission and Musk's role
DOGE will perform a full audit of the federal government and suggest major reforms.
Musk, famous for running a lean operation at SpaceX, will be instrumental in this. He has extensive experience in lowering corporate spending, and has promised to cull federal payrolls in the same manner.
He reduced staff at X by 80% after buying it, a move he claims prevented a $3 billion shortfall.
Musk, however, admits that the proposed bureaucratic cuts might cause "temporary hardship."
New appointment
Ramaswamy to join Musk in leading DOGE
Joining Musk in heading DOGE will be entrepreneur and ex-GOP presidential candidate Vivek Ramaswamy.
Ramaswamy announced his withdrawal from the Ohio Senate race after Trump's announcement of the new department.
He reaffirmed his commitment to his new role by writing on X, "We will not go gently."
Potential hurdles
Labor laws may challenge Musk's cost-cutting strategies
Labor laws protecting federal employees could be a challenge for Musk's cost-cutting strategies.
Tesla is the sole major US carmaker without a unionized workforce, and the billionaire CEO wants to keep it that way.
Meanwhile, federal government employees enjoy strong employment protections that could hinder Musk's approach to cost-cutting, and may even render it impossible.
Though the SpaceX boss runs several companies, he has little experience handling public sector employees. This will surely be a test of his capabilities.