On Wednesday afternoon, many employees at the Technology Transformation Services (TTS) within the US General Services Administration (GSA) faced layoffs, according to sources. The cuts mostly affected probationary and short-term staff, including those from the Presidential Innovation Fellowship program, which brings tech experts into government roles for a limited time. Reports indicate that nearly 50 out of 70 members of the US Digital Corps, a two-year fellowship for early-career professionals, were also let go.
Before the layoffs, TTS management met with workers individually. Sources claimed these meetings felt “coercive” as employees were given one last chance to resign voluntarily through a previous email known as the “Fork in the Road.”
Though the exact number of layoffs is uncertain, estimates suggest it could exceed 70. Before this, TTS employed around 650 people. Those terminated are expected to receive official emails regarding their dismissal later on Wednesday.
A spokesperson for GSA stated that the leadership is focused on streamlining the federal workforce. They are adhering to executive orders and emphasizing a respectful process for all personnel during this transition.
The last working day for those terminated is reportedly set for March 7.
Similar layoffs occurred recently at the Consumer Financial Protection Bureau, where many employees with less than two years of service were also dismissed. This resulted in a glitch where fired workers received emails with their names incorrectly formatted as “[EmployeeFirstName][EmployeeLastName].”
Thomas Shedd, a former Tesla software engineer who is now part of TTS, hinted that cuts were expected as GSA adjusts to operate with a smaller budget and workforce. In speaking to TTS employees last week, he warned that staffing levels would decrease significantly.
Under new leadership, GSA aims to transform TTS to function like a “startup software company,” focusing on AI and centralized data management across the federal government.
GSA was one of the first agencies taken over by associates of Elon Musk when Donald Trump came back to power. Nicole Hollander, who helped Musk with the Twitter acquisition, has joined GSA’s upper management along with several young tech professionals linked to his companies.
These layoffs occur as TTS leadership prepares to launch “GSAi,” a generative AI chatbot designed to enhance staff productivity and manage large datasets. The agency is also looking to cut costs by selling over 500 federal buildings while encouraging staff to return to the office.
On the same evening, a federal judge allowed the Trump administration to carry on with its plans to decrease the federal workforce.
This is an evolving story, so stay tuned for updates.
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