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GSA Seeks to Rehire Hundreds After Musk-Led Cuts, Sets Oct. 6 Return

The move follows operational turmoil from rapid lease cancellations that yielded far smaller savings than advertised.

Overview

  • The General Services Administration asked hundreds of dismissed workspace managers to accept or decline reinstatement by the end of the week, with a report date of Oct. 6, according to an internal memo obtained by the Associated Press.
  • Many of the affected employees were off the job for roughly seven months while still on payroll as the agency incurred costs to remain in properties slated for termination or left to expire.
  • GSA previously sent more than 800 lease-cancellation notices and later spared over 480 of those leases as projected savings from cancellations fell from nearly $460 million to $140 million by late July, according to a former GSA official.
  • Large workforce reductions left the agency strained, with an anonymously sourced briefing citing cuts of 79% at headquarters, 65% among portfolio managers, and 35% among facilities managers, contributing to 131 leases expiring without vacating.
  • The Government Accountability Office is reviewing GSA workforce actions and property decisions, while other agencies such as the IRS, Labor Department, and National Park Service have begun reinstating some employees.