Trump Tasked Elon Musk To Oversee Government Efficiency. Here’s How Musk Has Streamlined Costs At His Own Companies
President-elect Donald Trump has recently appointed Elon Musk to colead a new Department of Government Efficiency. The goal? To cut down on government waste and make things run smoother, all while saving money. Musk will work alongside Vivek Ramaswamy, which, as many have pointed out, is unusual for a cost-cutting department.
But what makes Musk qualified for this role? Well, he’s no stranger to maximizing efficiency in his companies, although this has put him in hot water with the unions.
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When Musk bought Twitter in 2022, one of his first and most infamous moves was to rebrand it as X and cut down on what he saw as unnecessary perks. Out went the free office lunches and remote work became a thing of the past. As Business Insider reported, Musk demanded an intense commitment from those who stayed, telling employees that tough times were ahead. They needed to work with “a maniacal sense of urgency.” He also famously slashed about half of Twitter’s staff, signaling that only the most dedicated would remain.
Musk’s management style at Tesla (NASDAQ:TSLA) has always been about pushing the limits for himself and his team. Tesla’s employee handbook encourages workers to break traditional office rules to solve problems. Employees who think something can be done better are expected to act on it, even if it means reaching out to Musk directly.
In a late-night companywide email announcing the layoffs, Musk also demanded the resignation of any Tesla executive with more than three direct reports who “don’t obviously pass the excellent, necessary and trustworthy test.”
Musk has led by example, having spent nights sleeping on the factory floor to show his dedication. This intense work culture, where nothing is more important than getting things done, has helped Tesla keep costs under control while expanding massively.
SpaceX, Musk’s aerospace company, also follows a “ruthlessly efficient” approach. In 2019, Musk cut 10% of the workforce to ensure the company remained lean enough to achieve its goals. At SpaceX and his other companies, Musk has insisted that workers leave meetings that don’t benefit them. Additionally, SpaceX remains steadfast in its goal of lowering the cost of space travel. Still, the company raised its rocket launch prices by around 8% in 2022.
Applying it to Government
So, how might Musk’s approach translate to government work? Trump believes Musk’s private sector successes could bring a much-needed shake-up to Washington. Just like his companies, it’s likely Musk will push for fewer employees, a laser focus on priorities and a drive to eliminate anything that doesn’t add value.
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