U.S. Government Rehires Workers Cut in Musk’s Cost-Saving Drive

Hundreds of federal employees who lost their jobs during Elon Musk’s sweeping cost-cutting campaign are being asked to return to work.

The General Services Administration (GSA) has given the workers, who oversaw government office spaces, until the end of the week to decide whether to accept reinstatement. Those who agree must report back on October 6, after what amounts to a seven-month paid absence. During that time, the agency in some cases incurred steep costs to maintain properties it had planned to vacate or whose leases had lapsed, expenses ultimately borne by taxpayers.

“Ultimately, the outcome was the agency was left broken and understaffed,” said Chad Becker, a former GSA real estate official. “They didn’t have the people they needed to carry out basic functions.”

Becker, who now represents property owners with federal leases at Arco Real Estate Solutions, described the agency as operating in “triage mode” for months. He said the abrupt reversal highlights how the Department of Government Efficiency, under Musk’s leadership, pushed downsizing too aggressively.

Created in the 1940s, the GSA manages and acquires thousands of federal workplaces. Its call for employees to return mirrors similar moves at other agencies affected by the cuts.

Last month, the Internal Revenue Service announced it would allow some staff who had accepted resignation offers to remain on the job, signaling a broader retreat from the earlier wave of reductions.