Elon Musk’s Team to Finalize Dismantling of USAID, Layoffs Expected
Elon Musk’s cost-cutting team is finalizing plans to dismantle the U.S. Agency for International Development (USAID), ordering the dismissal of thousands of local employees and American diplomats and civil servants stationed abroad, according to two former senior USAID officials cited by Dawn.
On Friday, Congress was informed that nearly all USAID employees will be laid off by September, its overseas offices will be closed, and some of its functions will be transferred to the State Department. This move by Musk’s Department of Government Efficiency will effectively eliminate the agency’s remaining workforce.
Read More: Trump Administration Announces Major Cuts to USAID Workforce
“This is the final closing out,” stated one former senior USAID official.
The dismantling of USAID and the merging of its operations into the State Department began in February under President Donald Trump, who appointed Musk to lead government cost-cutting efforts in alignment with his “America First” policies. The State Department has not yet responded to requests for comment.
According to former officials and a source familiar with the situation, USAID’s human resources office informed regional bureaus during a conference call that layoff notices would be issued to over 10,000 locally hired foreign nationals, with terminations set for August. One former official indicated that this could potentially violate labor laws in the countries where these employees are based.
In addition, notices will be sent to U.S. diplomats and civil servants working abroad for the agency, which has been the primary U.S. foreign aid provider for over 60 years.
Trump has accused USAID—without evidence—of being plagued by fraud and controlled by “radical left lunatics,” while Musk has falsely labeled it a “criminal” organization.
As a result of the agency’s closure, thousands of its employees were placed on administrative leave and received layoff notices on Friday, while hundreds of contractors were dismissed, and over 5,000 aid programs were terminated. This disruption threatens critical humanitarian aid efforts relied upon by millions worldwide.
USAID operates missions in over 60 countries, with a significant portion of its funding allocated to humanitarian assistance and health programs.
