Elon Musk departs Trump administration

World's richest person and Doge have cut nearly 260,000 people from the 2.3 million-strong federal civilian workforce

Tesla and SpaceX chief executive Elon Musk, left, with US President Donald Trump. Mr Musk has stepped down from his government role after leading drastic federal job cuts. AFP

Elon Musk on Wednesday said he was leaving his position within the US government after leading the Department of Government Efficiency in an effort to slash federal spending.

“As my scheduled time as a Special Government Employee comes to an end, I would like to thank President Donald Trump for the opportunity to reduce wasteful spending,” he wrote on X.

A White House official told Reuters that Mr Musk is leaving the administration and his “off-boarding will begin tonight”.

Mr Musk's 130-day mandate as a special government employee in the Trump administration was set to expire around May 30. The administration has said Doge's efforts to restructure and shrink the federal government will continue.

“The Doge mission will only strengthen over time as it becomes a way of life throughout the government,” he wrote.

Mr Musk and Doge have cut nearly 12 per cent, or 260,000 people, from the 2.3 million-strong federal civilian workforce largely through threats of firings, buyouts and early retirement offers, Reuters reported.

Mr Musk's departure comes after he criticised the price tag of Republicans' tax and budget legislation making its way through Congress.

“I was disappointed to see the massive spending bill, frankly, which increases the budget deficit, not just decreases it, and undermines the work that the Doge team is doing,” Mr Musk told CBS News.

The richest person on the planet's political activities have drawn protests and some investors have called for Mr Musk to leave his work as Mr Trump's adviser and manage Tesla more closely.

Dozens of demonstrators gather in lower Manhattan to protest against Tesla and owner Elon Musk. AFP

He leaves Washington dramatically changed. Doge's firings exploded the US capital's long-held boast that it is immune to economic shocks that buffet the rest of the country.

The Tesla and SpaceX chief executive joined the Trump administration in January and claimed he would cut $2 trillion from the $7 trillion federal budget. It became clear that was wildly overambitious, and as of today, Doge says it has saved an estimated $175 billion.

But the taxpayer may end up on the hook for more than that as the government is forced to settle lawsuits over the mass firings, as well as hire expensive contractors to fill the gaps left by an overzealous Doge.

Any savings will also be dwarfed by new deficit spending under the Republicans' tax bill that is currently under Senate consideration.

Mr Musk's role working for Mr Trump was always intended to be temporary, and he had recently signalled that he would be shifting his attention back to running his businesses.

Elon Musk attends a cabinet meeting at the White House in March. Reuters