How Musk and Ramaswamy could slash Federal Government jobs

A bar chart depicting federal employment by metro area in 2022 shows that Washington, D.C.; Huntsville, Alabama; and Virginia Beach, Virginia, had the highest share of federal employees. Conversely, Modesto, California; Cape Coral, Florida; and Port St. Lucie, Florida, had the lowest. In Austin, 1.7% of employees work for the federal government.

Federal Employment by Metro Area (2022)

D.C. - 13.9%

Huntsville, Ala. - 9.3%

Virginia Beach, Va. - 9.2%

Honolulu, Hawaii - 8.9%

Baltimore - 8.8% ...

Austin, Texas - 1.7% ...

Baton Rouge, La. - 1.1%

Allentown, Pa. - 1.0%

Modesto, Calif. - 1.0%

Cape Coral, Fla. - 1.0%

Port St. Lucie, Fla. - 1.0%

Data: U.S. Census Bureau; Chart: Alice Feng/Axios

Cities across the U.S., including Austin, could soon experience job cuts by a significant employer — the federal government.

Why It Matters

Elon Musk and Vivek Ramaswamy, tapped by President-elect Trump to lead the new Department of Government Efficiency (DOGE), have vowed to cut what they see as wasteful spending.

"We expect mass reductions," Ramaswamy said on Fox News' "Sunday Morning Futures" on Nov. 17. "Certain agencies might be eliminated outright. We foresee massive cuts among federal contractors and others who are overbilling the federal government." Last year, Ramaswamy pledged to fire 50% of "federal bureaucrats" if elected president.

By the Numbers

In 2022, about 1.7% of workers in the Austin area were federal employees — roughly 23,126 out of 1,357,836 workers, per the latest Census Bureau data. In Austin, these include IRS employees, air traffic controllers, Social Security staff, postal workers, and judges. Federal employees constitute the largest workforce segment in Washington, D.C. (13.9%), followed by Huntsville, Alabama (9.3%), and Virginia Beach, Virginia (9.2%). Cities with large military installations, such as San Antonio (4.5%) and El Paso (6%), also have a significant portion of federal employees.

Follow the Money

The average annual pay for a federal employee is about $106,000, according to ZipRecruiter. The U.S. has approximately 2 million civilian employees, so cutting half, as Ramaswamy suggested, could save the government about $100 billion annually in salaries.

Federal Employment by Metro Area (2022)

Purple choropleth map of the share of federal employment by metro area in 2022.

Data: U.S. Census Bureau; Chart: Alice Feng/Axios

How It Works

Sources tell Axios that Musk plans to use AI and crowdsourcing to hunt for waste, fraud, and abuse. However, DOGE isn't a government department. Musk and Ramaswamy plan to establish a nongovernmental entity to implement the entrepreneurial approach to government envisioned by Trump.

What They're Saying

"This will send shockwaves through the system and affect anyone involved in government waste, which is a lot of people!" Musk said in a statement.

The Other Side

"People are apprehensive and fearful," said Nicole Cantello, an attorney with the Environmental Protection Agency and union president representing EPA workers in the Upper Midwest. Everett Kelley, National President of the American Federation of Government Employees, warned that millions of Americans should brace for massive cuts to benefits and services they rely on for survival under these plans.

Reality Check

With federal employees scattered throughout the country, making significant cuts will be challenging. Members of Congress are generally reluctant to cut hometown jobs and services. "When are we going to do what we said we would do?" asked U.S. Rep. Chip Roy, a Republican from Texas, after the GOP-led House passed a funding bill lacking the promised spending cuts.

The Bottom Line

The goal of saving trillions will collide with the bipartisan reality that it is easier and more popular to give than to take away, as noted by Axios' Jim VandeHei and Mike Allen.