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Will Trump & Elon cut >250,000 government employees in 2025?
114
𝕊1217
resolved Feb 12
Resolved as
42%

Linked to this Kalshi question:

If there are more than 250000 federal employees no longer working relative to the January 2025 employee count before Jan 2026, then the market resolves to Yes. Outcome verified from FRED.

Note the resolution criteria—what matters is the change in the count of federal employees, not whether we can confirm Trump and/or Elon directly fired them. For reference, the specific chart Kalshi links to appears to be this one.

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Kash Patel orders FBI transfer of 1,500 agents and staff from the bureau’s Washington, D.C., headquarters to field offices across the country.

Roughly 1,000 will be sent to high-crime cities that the Trump administration designated, where they can focus on fighting crime instead of political games. Another 500 will be reassigned to Huntsville, Ala., which is widely seen as D.C.’s version of exile.

This is just start of entire or parts of agencies order to move.

USPS to merge under Commerce Department oversight, Howard Lutnick in charge.

Streamline operations, automation . Likely at least no new hires as 30,000 per year get retirement. Likely will prep it for privatization. Privatizing means getting pieces more efficient and profitable before selling. Remove the everyone must be served no matter what mandate. Some parts ready for spin out earlier. Maybe this year

relevant: "Consistent with President Trump's instructions, all federal employees will shortly receive an email requesting to understand what they got done last week. Failure to respond will be taken as a resignation." -- https://x.com/elonmusk/status/1893386883444437415

Hegseth announces 5400 pentagon staff will be fired soon. Trump replacing head of joint chiefs and too admiral and many other top generals etc… there are 800000 civilian staff in the military. Hegseth has ordered 8% cuts each year for 5 years. This refers to budgets but if it also roughly corresponds to civilian staff cuts and it in general does mathematically. This works out to about 64000 staff cuts in 2025 for support and supply chain and maintenance and administration.

Court ruling will not help federal government unions with firings. Unions have to try to use a particular process related to union agreement and laws. Filing also says

Roughly 220,000 workers are considered probationary and another 345,000 were deemed nonessential during the last major government shutdown during Mr. Trump's first term. This puts the range at 400,000 to 700,000 reductions when including other firings and agency shutdowns.

So far this week

6700 IRS to be laid off Feb 10

~10000 USAID

Thousands from HHS

2000 Dept of Energy

Dept of Agriculture 1000+

Veteran affairs 1000+

Dept of Interior 2300

Small Business Admin 720

Homeland Security 405

EPA 388

NSF 168

Office of personnel 200

GSA 100

So this is about 25000

the 200,000 ish probationary staff

77000 who took the buyout

bought Ṁ200 YES

There are 220,000 probationary staff.

@brianwang I think it's likely that about 40-70% (let's say 120k) of those are laid off, and the rest are deemed necessary. Then, an additionally 60k or so from the buyouts by end of year. That gets you to 180k. The question is, is there a clear mechanism to fire another 70k (and keep in mind, any HIRING the admin does offsets this number)? I think the market is sort of well-priced right now.

@benshindel

All agencies are to submit reduction in force plans

Early retirement offers

Moving agency HQ from DC to other states. Some will refuse to move.

If negotiations of halving military budgets work in any significant way then 130k less for every 10% reduction.

IRS reductions will be steep, I think 50-70%

Deep cuts at EPA, NIH

Privatization and cuts at USPS

The bills are coming from congress to officially reorganize or virtually eliminate agencies

Dept of Education about 4k in cuts coming

Project 2025 calls for a 50 percent reduction in federal employees within a year, and a 75 percent reduction within four years. This would significantly impact the VA and potentially the USPS, as veterans make up about 30 percent of the federal workforce. Project 2025 aims to privatize VA Health Care and the Department of Defense TRICARE system. This could lead to further staff reductions in these agencies.

IF the active US military is cut in half with negotiations with China and Russia then the number of future veterans will be cut in half. There would be less future demand. Big buckets would be privatizing Veteran affairs and USPS.

Before individual agency plans already had top down actions

Department of Energy: 1,200 - 2,000

  • Department of Veterans Affairs: Over 1,000 (excluding exempt probationary staff)

  • U.S. Forest Service: 3,400

  • Small Business Administration: 720

  • Consumer Financial Protection Bureau: Dozens (exact number not specified)

  • CDC 1200

  • CIA, FBI and DOJ firings are nearing 1000 and will soon be about 10k-20K

USAID 10000

up to 200k probationary layoffs

77,000 voluntary buyouts.

IF probationary layoffs are 153,000 then we will soon be at 250,000 (once voluntary layoffs are taken)

@brianwang I think you’re double counting a lot of these.

@benshindel I think the probationary category layoffs will be in the 90%+ range. Why would someone there less than 2 years be deemed essential when there are 90% of the other staff still there. Only some who were promoted and there say 15-20 years and got categorized as probationary might be deemed essential. But if the goal was to get rid of 50% in 1 year and 75% in 4 years then even those somewhat useful would be let go. This would put the probationary layoffs at 97-100%. In private layoffs, someone could be the only person who knows something at the time but the others can figure it out. They just did not before because they were not forced to pick it up.

This would mean 190,000 probationary and 77000 from the buyout. 10,000 from firings already in place and another 10,000+ firings per month. Closing in on 300,000 before the agency by agency plans are made and implemented. Agency plans I expect to see 5% more firings, 10-15% early retirement and more bonus to quit offers.

All probationary and new hires of less than 2 years are getting kicked out. Already thousands from each of many major agencies. They were shooting for 10% and got 3% and now they will get the next 7% with firings. It will have turned out to have been better to take the 8 month deal for many.

Trump is starting talks with Russia and China to halve military spending. This would also mean roughly halving the size of the military. us would drop from 1.3 million to 650k. China would go from 2 million to 1 million. Russia 1.5 million to 750k. That is the vision trump is proposing.

@brianwang I think this question doesn't include the military.

I guess it does count a large number of civilians who work in the Department of Defense, though.

According to reddit, a confirmed list of agencies with layoffs to probationary employees:

  • Consumer Financial Protection Bureau

  • Department of Education

  • Department of Energy

  • General Services Administration

  • Office of Personnel Management

  • Small Business Administration

  • US Forest Service

  • Veterans Affairs

  • National Nuclear Security Administration

Rumored but not confirmed: EPA, Army Corps of Engineers, DOJ, HHS, CISA, FAA, CIA, DoD, Dept of State, USDA, IRS, VBA, Dept of Interior

https://www.reddit.com/r/fednews/comments/1iouytl/list_of_agencies_with_mass_layoffs_to/

@Shai JFC … what are they doing

@NicoDelon draining the swamp, finally

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Why did this resolve at 42%?

https://www.whitehouse.gov/presidential-actions/2025/02/implementing-the-presidents-department-of-government-efficiency-workforce-optimization-initiative/

"The Plan shall require that each agency hire no more than one employee for every four employees that depart, consistent with the plan and any applicable exemptions and details provided for in the Plan.  This order does not affect the standing freeze on hiring as applied to the Internal Revenue Service.  This ratio shall not apply to functions related to public safety, immigration enforcement, or law enforcement [...] Sec 3  (c): Reductions in Force.  Agency Heads shall promptly undertake preparations to initiate large-scale reductions in force (RIFs), consistent with applicable law, and to separate from Federal service temporary employees and reemployed annuitants working in areas that will likely be subject to the RIFs.  All offices that perform functions not mandated by statute or other law shall be prioritized in the RIFs, including all agency diversity, equity, and inclusion initiatives; all agency initiatives, components, or operations that my Administration suspends or closes; and all components and employees performing functions not mandated by statute or other law who are not typically designated as essential during a lapse in appropriations as provided in the Agency Contingency Plans on the Office of Management and Budget website.  This subsection shall not apply to functions related to public safety, immigration enforcement, or law enforcement. "

Rep. Jared Moskowitz, D-Fla. first Democrat to join the House’s DOGE caucus. Executive order for workforce optimization initiative, Agencies must work with DOGE for deep reductions in force.

Likely halving the staff at NIH (18K), National Oceanic and Atmospheric Administration (12K), NSF (2K). This would mean about 16K staff reductions. Russell Vought now heads the Office of Management and budget and Vought has declared staff cuts of that level before for these particular agencies.

3 traders bought Ṁ867 NO
filled limit order Ṁ150/Ṁ150 YES at 38%

This is an interesting market! Curious to see how it plays out.