Trump Administration Offers Federal Workers Resignation Incentives, Echoing Elon Musk’s Approach at Twitter

In a significant shift aimed at streamlining the federal government, President Donald Trump has rolled out a new policy offering federal workers a buyout opportunity similar to an approach Elon Musk took with Twitter employees in 2022.

This move, designed to downsize and reform government operations, echoes Musk’s leadership style, which has increasingly influenced Trump’s administration.

On January 28, 2025, the US Office of Personnel Management (OPM) sent out an email to millions of federal employees, presenting a deferred resignation offer. This offer, available until February 6, 2025, gives employees the option to resign by September 30, 2025, in exchange for severance pay, including continued benefits until that time. The decision comes as part of a broader effort to reshape the federal workforce and reinstate in-office work five days a week.

The memo, which closely mirrored a message Musk sent to Twitter employees in 2022, shared a strikingly similar subject line:

“A Fork in the Road.”

Musk’s email to Twitter staff famously gave them an ultimatum to either commit to long hours and intense work or resign. Similarly, Trump’s memo emphasizes the importance of returning to the office and committing to excellence at all levels of government.

The buyout offers are part of Trump’s broader strategy to reduce the size and cost of the federal workforce, which includes the possibility of layoffs, restructuring, and further downsizing. The White House anticipates that up to 10% of federal employees, roughly 200,000 workers, could accept the offer, potentially saving the government up to $100 billion.

Trump’s decision to offer buyouts follows a campaign promise to shrink the size of the federal government. Senior officials in his administration have argued that this move is necessary to eliminate inefficiencies and promote a more effective government. The buyout program, which includes severance pay and benefits, was praised by the administration as a generous offer for those looking to transition out of government employment.

While some critics view the buyout program as part of a broader effort to dismantle the federal bureaucracy and reduce the influence of unions, the Trump administration insists that this initiative is intended to streamline government operations and ensure a more efficient, merit-based workforce. Federal employees are being given a choice: accept the offer and leave or risk facing job eliminations, possible layoffs, and future uncertainty within the federal agencies.

The influence of Elon Musk, who has taken a central role in Trump’s efforts to overhaul the government, is evident in this approach. Musk, who leads the Department of Government Efficiency, has previously advocated for cuts to government regulations and spending. His collaboration with Trump on workforce reforms is aimed at transforming federal operations into a more flexible and results-oriented structure, although this strategy has sparked considerable concern among federal workers and their unions.

With input from ABC News, BBC, the Washington Post, CNN.