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Another shutdown: White House to begin mass layoffs of staff - Politico

Another shutdown: White House to begin mass layoffs of staff - Politico Photo: layoffs expected to begin within the next day or two (Getty Images)
Author: Oleh Velhan

The Trump administration is set to begin mass layoffs of federal agency employees in the coming days due to the partial suspension of government funding (shutdown), according to Politico.

According to four sources, the plan was outlined by Office of Management and Budget (OMB) Director Russ Vought during a closed conference call.

"OMB chief Russ Vought told House Republicans on a private call Wednesday that the administration will start mass reduction-in-force moves, or firings, of federal workers 'in a day or two'," the sources said.

Politico reported that both Vought and President Donald Trump threatened to apply maximum pressure on Democrats during the ongoing government shutdown.

Republicans in the Senate reportedly hope to win over additional Democratic votes in the coming days to pass a temporary GOP-sponsored funding measure that would end the standoff.

Background

On Wednesday, October 1, the US federal government partially shut down after Republicans and Democrats failed to reach a budget agreement.

During this period, federal agencies are scaling back operations, social programs are suspended, and hundreds of government employees have been placed on unpaid leave.

According to President Donald Trump’s economic advisers, the shutdown could cost the country $15 billion in GDP losses per week. If it continues for a month, it could lead to an additional 43,000 unemployed.

For a detailed analysis of why the shutdown happened and how it could affect the US dollar and economy, read the full RBC-Ukraine report.