Hundreds of federal employees in the United States are being reinstated after months of uncertainty following aggressive workforce reductions led by the Department of Government Efficiency (DOGE).
The General Services Administration (GSA), which manages federal buildings and leases, has issued return-to-work notices to staff who were laid off earlier this year.
The move marks a significant reversal of cost-cutting measures initiated under the Trump administration and overseen by Elon Musk, who heads DOGE.
Employees have been given until the end of the week to accept or decline reinstatement.
Those who opt to return must report for duty by October 6, ending what has effectively been a seven-month paid leave for many.
Background: DOGE’s Rapid Federal Downsizing Strategy
Beginning in March 2025, DOGE launched a sweeping campaign to reduce the size of the federal workforce.
Thousands of GSA employees were encouraged to resign or take early retirement, while hundreds were dismissed outright.
The agency’s headquarters saw a 79% reduction in staffing, including a 65% cut in portfolio managers and 35% in facilities managers.
DOGE also issued over 800 lease cancellation notices and proposed selling hundreds of federally owned buildings to generate savings.
However, the rapid implementation of these measures left the GSA severely understaffed and unable to perform basic functions.
“Ultimately, the outcome was the agency was left broken and understaffed,” said Chad Becker, a former GSA real estate official.
Operational Disruption and Cost Overruns
Despite the layoffs, GSA continued to incur costs for properties whose leases were either terminated or allowed to expire.
In some cases, the agency paid to retain access to buildings it no longer had the staff to manage.
These expenses were passed on to taxpayers, raising concerns about the effectiveness of DOGE’s cost-cutting strategy.
The return-to-work order is seen as an attempt to stabilize operations and restore essential services.
GSA representatives have stated that the leadership team is “making adjustments in the best interest of the customer agencies we serve and the American taxpayers”.
Federal Employees Rehiring Extends Beyond GSA
The GSA is not the only agency reversing its downsizing decisions.
The Internal Revenue Service (IRS), the Labor Department, and the National Park Service have also reinstated employees who accepted buyouts or were laid off earlier this year.
These agencies were among the primary targets of DOGE’s campaign to reduce fraud, waste, and abuse in government operations.
The rehiring wave reflects growing recognition that the cuts may have gone too far, too fast.
Critics argue that the reductions created confusion and disrupted essential services without delivering meaningful savings.
“It’s created costly confusion while undermining the very services taxpayers depend on,” said Rep. Greg Stanton of Arizona, the top Democrat overseeing the GSA.
Legal and Political Scrutiny
The reinstatement of federal employees has sparked debate over the legality and prudence of DOGE’s actions.
The Trump administration continues to defend its approach to government efficiency.
Meanwhile, lawmakers and policy experts are calling for greater oversight and transparency in future workforce decisions.
The episode underscores the challenges of balancing fiscal responsibility with operational continuity in public service.
As agencies work to rebuild capacity, the focus is shifting toward long-term planning and measured reform.
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