Federal job cuts are pushing US layoffs near COVID-level highs — and it's not just government workers feeling the fallout. Here's who could be next

Why is DOGE laying off so many workers, and will this continue?

DOGE was created by executive order by President Donald Trump on Jan. 20, 2025. President Trump has made it clear that Elon Musk was put in charge of DOGE to wage "war on government waste, fraud, and abuse."

DOGE has begun aggressive audits of virtually every department in the U.S. government, and has already laid off or made plans to lay off thousands. According to Newsweek, in March alone this included:

• around half of all employees at the Department of Education
• 20 employees from NASA
• 4,000 civilian employees from the Department of Defense
• 7,000 IRS workers, with up to half of the 90,000 workforce potentially on the chopping block in future layoffs
• 1,000 employees at the Department of the Interior
• more than 1,300 workers at the Department of Veterans Affairs, with more layoffs expected
• 780 employees from the Department of Housing and Urban Development (HUD), with a total of 4,000 layoffs ultimately expected
• thousands of workers from the U.S. Department of Agriculture (USDA)
• just under 700 Department of Energy employees
• 400 probationary workers from the Federal Aviation Administration (FAA)
• 200 employees at the Consumer Financial Protection Bureau
• 76 Department of Treasury employees
• 10,000 layoffs expected to occur at the United States Postal Service

"I'm just here trying to make government more efficient, eliminate waste and fraud, and so far we're making good progress, actually," Elon Musk told Fox Business mid-March.

"Our savings at this point exceed $4 billion a day, so it's very significant."

Musk also said he believes DOGE will likely meet its goal of cutting $1 trillion from government spending, unless the department is stopped.

Invest in real estate without the headache of being a landlord

Imagine owning a portfolio of thousands of well-managed single family rentals or a collection of cutting-edge industrial warehouses. You can now gain access to a $1B portfolio of income-producing real estate assets designed to deliver long-term growth from the comforts of your couch.

The best part? You don’t have to be a millionaire and can start investing in minutes.

Learn More

How will DOGE's firings affect local economies and communities?

Massive cuts to the federal government have obviously left many federal workers and their families struggling, and this is likely to have consequences for the broader economy.

The Center on Budget and Policy Priorities has indicated that when unemployed federal workers reduce spending, local businesses near military bases, national parks and federal field offices suffer.

Private companies that contract with the government are also being affected and may need to lay off staff. And nonprofit groups that have lost access to funds from the U.S. Agency for International Development (USAID) are also being impacted, as are farmers who previously sold $2 billion in U.S.-grown crops to USAID for provide humanitarian relief efforts.

All of these layoffs, and the resulting ripple effects, could potentially push the country further toward recession — which is already a looming threat because of the uncertainty surrounding tariffs.

What to do if you're laid off

Whether you are a federal worker experiencing layoffs or you lose your job because of the ripple effects, there are steps you can and should take to shore up your finances and help protect your future.

One of the first things to do is make sure you understand your rights. The government has already ordered the Trump administration to rescind the firing of some federal workers. Be sure to check with your union rep, if you have one, or consider consulting with an employment law attorney if you feel you were treated unfairly.

DOGE was offering severance payments to some federal workers. So, you can explore whether you are eligible for this separation pay — as well as make sure you know whether you are owed any money for unpaid vacation or sick time.

You'll also need to explore options to get health insurance ASAP if you had coverage through your government job, as COBRA (which allows you to stay on your workplace plan for up to 18 months) doesn't apply to federal employees.

You'll also want to apply for unemployment benefits right away, as most federal workers will be eligible.

Lastly, you should start making cuts to your budget to spend the bare minimum until you can find new work.

By taking these steps, as well as reaching out to your professional network and polishing up your résumé, you can help get yourself back on track. Your new job may need to be in the private sector, at least for the next few years. But with careful financial planning and a dedicated job search, you can help avoid long-term damage to your finances caused by the DOGE cuts.