Share this article:

'Imminent' | Trump eyes more layoffs as shutdown hits federal workers

White House exterior at sunset

The federal government has shutdown with President Donald Trump using the standoff to warn of sweeping layoffs and deep program cuts.

Unlike previous shutdowns, which usually see workers temporarily furloughed, White House officials signaled a more aggressive approach. Press Secretary Karoline Leavitt said federal agencies were being directed to prepare for reductions, telling reporters “layoffs are imminent.”

The Office of Management and Budget (OMB) also announced it was freezing about $18billion in infrastructure funding earmarked for New York’s subway and Hudson Tunnel projects. Both initiatives are tied to the home states of Democratic leaders in Congress.

Trump praised the role of OMB Director Russ Vought in executing the plan, calling him a skilled budget cutter. “He can trim the budget to a level that you couldn’t do any other way,” the president said at the start of the week, referencing Vought’s influence on federal spending.

Shutdown approach raises political stakes

The president framed the shutdown as a test of strength, telling an audience at the White House: “So they’re taking a risk by having a shutdown.” His remarks reflected the combative strategy adopted by the administration after lawmakers failed to reach agreement on funding.

Observers noted the White House has taken greater control of the situation than in previous shutdowns, intensifying fears that the standoff could be used to force structural cuts.

Featured Resource

Why HR still struggles to reach Deskless Employees

Why HR still struggles to reach Deskless Employees

Frontline employees often have the greatest need for HR support—but the least access to it. The reason is simple: most HR systems were designed for desk-based employees.

If you're investing in HR digital transformation, it's essential to ensure that every employee—whether office-based, hybrid, or deskless—has equal access to HR services, information, and support.

This guide explores the key considerations for building a consistent, accessible, and connected HR service experience for your entire workforce.

You'll learn how to:

✅ Deliver consistent HR support across every location

✅ Reduce repetitive HR requests

✅ Improve self-service adoption

✅ Connect email, mobile, AI and employee portals

✅ Create a better employee experience for frontline workers

Show more
Show less

Leavitt said Cabinet officials were already coordinating with OMB to identify reductions. “Unfortunately, because the Democrats shut down the government, the president has directed his Cabinet and the Office of Management and Budget is working with agencies across the board to identify where cuts can be made and we believe that layoffs are imminent,” she said.

Vice President JD Vance acknowledged the uncertainty for the workforce but said no final decision had been made about specific employees. “Well, first of all, we haven’t made any final decisions about what we’re going to do with certain workers,” Vance told reporters, even as he conceded the situation could escalate into layoffs if the shutdown continues.

The shutdown has already increased the pressure on employees, lawmakers, and federal agencies alike. As funding negotiations remain unresolved, the prospect of workforce cuts adds to the turbulence facing government staff.

Comments (1)

Sign up for a FREE myGrapevine account to have your say.

  • Kevin Epley
    Kevin Epley
    Thu, 2 Oct 2025 12:39pm EDT
    Because no one can argue that our behemoth federal government is riddled with inefficiencies and waste, shutting it down to clean up the problem might just be the right thing to do. Similar to "lockout/tagout procedure with a piece of manufacturing equipment that has broken down.
Share this article:

You are currently previewing this article.Create account

This is the last preview available to you for the next 30 days.

To receive our daily newsletter and access HR features & insights, create a free account today.