Hundreds of federal workers laid off during Elon Musk’s rapid downsizing are being recalled after months of costly disruption.
An internal memo obtained by The Associated Press shows the General Services Administration has told dismissed staff, who once managed federal office space, to decide by week’s end whether to accept reinstatement. Those who return must report on Oct. 6, ending what critics describe as a seven-month “paid furlough” that left taxpayers footing the bill for properties the agency failed to exit or re-lease.
“Ultimately, the outcome was the agency was left broken and understaffed,” said Chad Becker, a former GSA real estate official now representing government landlords at Arco Real Estate Solutions. “They didn’t have the people they needed to carry out basic functions.”
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Becker said the agency has been operating in “triage mode” since the cuts, and the reversal highlights how Musk’s Department of Government Efficiency, known as DOGE, pushed reductions too aggressively.
The GSA, created in the 1940s to manage federal buildings and leases, has been central to Musk’s cost-cutting experiment. Thousands of staff left beginning in March under buyouts and early retirement offers, while hundreds were dismissed outright. Although no longer reporting to work, some of those employees continued to collect salaries.
The agency declined to answer detailed questions about the recall, staffing levels, or the financial impact of abandoned lease terminations. In a statement, a spokesperson said only: “GSA’s leadership team has reviewed workforce actions and is making adjustments in the best interest of the customer agencies we serve and the American taxpayers.”
Democrats in Congress say the cuts backfired. Rep. Greg Stanton of Arizona, the ranking Democrat overseeing GSA, told AP there is no proof the reductions saved money. “It’s created costly confusion while undermining the very services taxpayers depend on,” he said.
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Musk’s allies embedded themselves at GSA headquarters during the overhaul, canceling thousands of leases and drafting plans to sell hundreds of federally owned buildings. At one point, DOGE boasted of saving nearly $460 million from lease cancellations, but Becker said that estimate had plunged to $140 million by the end of July.
The retrenchment left holes across the government’s real estate network. Headquarters staff was cut by 79%, portfolio managers by 65%, and facilities managers by 35%, according to a federal official briefed on the matter. In more than 130 cases, leases expired without agencies vacating the space, saddling taxpayers with fees while property owners were unable to re-rent the buildings.
Mounting pressure has already forced DOGE and the GSA to walk back major parts of the strategy. Over 480 leases once targeted for cancellation have been preserved, covering offices for the IRS, Social Security Administration, and Food and Drug Administration.
The Government Accountability Office is now reviewing the GSA’s staffing reductions, lease cancellations, and planned property sales. David Marroni, a senior GAO official, confirmed the watchdog expects to release its findings in the months ahead.
