Congress notified of mass layoffs and closure of overseas offices

Elon Musk’s cost-cutting team is finalizing the dismantling of the US Agency for International Development (USAID), ordering the dismissal of thousands of local workers, American diplomats, and civil servants stationed overseas, according to two former senior USAID officials and a source familiar with the matter.

On Friday, Congress was informed that nearly all USAID employees will be terminated by September, all overseas offices will be closed, and some functions will be absorbed into the State Department.

USAID workforce to be completely eliminated

Musk’s Department of Government Efficiency has now moved to eliminate what remains of the agency’s workforce.

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“This is definitely the final closing out,” said one of the former senior USAID officials.

In February, President Donald Trump and Musk initiated the process of shutting down USAID and merging its operations into the State Department to align with Trump’s “America First” policies. The State Department has not yet responded to requests for comment.

According to sources, USAID’s human resources office informed regional bureaus in a conference call that layoff notices would be sent to over 10,000 locally hired foreign workers, effective in August. Notices will also be issued to US diplomats and civil servants assigned to the agency abroad.

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Trump and Musk accuse USAID of fraud

Trump has repeatedly claimed—without evidence—that the agency was plagued by fraud and controlled by “radical left lunatics,” while Musk has labeled it a “criminal” organization.

As part of the shutdown, thousands of USAID staff have been placed on administrative leave, hundreds of contractors fired, and over 5,000 programs terminated, severely disrupting global humanitarian aid efforts that millions rely on.

Humanitarian aid efforts disrupted

According to the Congressional Research Service, USAID maintains missions in more than 60 countries, with much of its funding allocated to humanitarian and health programs.

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Major beneficiaries included war-torn Ukraine, the Democratic Republic of Congo, US ally Jordan, and the Israeli-occupied West Bank and Gaza Strip.

A summary of the conference call—reviewed by Reuters—confirmed the terminations of all locally hired foreign workers, American diplomats, and civil servants working with USAID overseas.

It noted that over 600 US diplomats are currently on secondment to USAID but did not specify the number of affected civil service employees. Most of them will be dismissed by July, with the intent to close “all programmatic work.”

“Every position eliminated; 100 percent of the agency is RIF’d (Reduction in Force) or will be,” the summary stated, advising employees to focus on securing the appropriate benefits before termination.

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