Elon Musk’s Early Retirement Buyout Plan Surpasses 40,000 Applicants

As the application deadline approaches, over 40,000 federal employees have applied for the early retirement buyout program initiated by Elon Musk

Elon Musk, CEO of Tesla, has proposed a significant early retirement buyout plan for federal employees, which has garnered widespread attention. According to recent reports, more than 40,000 federal workers have applied for the program, which is approximately 2% of the total federal workforce. The proposal is part of an effort by the Trump administration to rapidly downsize the federal government in a bid to reduce costs.

The application deadline for the buyout program, which was set for February 6, 2025, at 11:59 PM (local time), has brought in a large number of applicants. This initiative, introduced by Musk, who is known for his role in the government's efficiency department, aims to streamline government operations by encouraging early retirements. These individuals who submit their resignation letters by the deadline will continue to receive their salary and benefits until September of the same year.

The proposal offers a straightforward approach to federal employees: by simply sending a message titled “Resign” to the Office of Personnel Management (OPM), employees are eligible for a comprehensive retirement package. However, certain groups, such as military personnel, postal workers, and immigration officers, are excluded from the offer.

Both President Donald Trump and Elon Musk have been seeking ways to downsize the federal government rapidly in the early years of Trump's administration. Through this buyout initiative, they hoped that between 5% and 10% of federal employees would opt for early retirement, potentially saving the government up to $100 billion annually. Musk's influence and his push for efficiency are central to this goal.

In an email sent to federal employees on January 28, 2025, OPM highlighted that most federal agencies are likely to undergo restructuring, with some facing significant downsizing. Employees who choose not to participate in the early retirement program may face the risk of being laid off.

However, the buyout plan has drawn criticism from federal employee unions. Everett Kelley, President of the American Federation of Government Employees (AFGE), expressed concerns over the legitimacy and enforceability of the buyout program. He warned that federal workers should not be misled by the manipulative rhetoric of billionaires like Elon Musk and his supporters. Kelley has urged employees to refrain from participating in the early retirement offer.

As the deadline for the early retirement buyout draws near, there is growing debate over the long-term implications of such a drastic move. While the program promises immediate financial relief for retiring employees, its broader effects on government operations and employee morale remain uncertain. The success of the program could have far-reaching consequences for the structure and efficiency of the U.S. federal government in the years to come.