Elon Musk’s cost-cutting team is finalizing the dismantling of the U.S. Agency for International Development (USAID), ordering the dismissal of thousands of local employees and American diplomats and civil servants stationed abroad, according to two former senior USAID officials cited by Dawn.
On Friday, Congress was informed that nearly all USAID employees will be laid off by September, its overseas offices will be shut down, and some of its functions will be transferred to the State Department. This move by Musk’s Department of Government Efficiency will eliminate the agency’s remaining workforce.
Dismantling USAID and merging its operations into the State Department began in February under President Donald Trump, who appointed Musk to lead government cost-cutting efforts in alignment with his “America First” policies.
According to details, USAID’s human resources office informed regional bureaus during a conference call that layoff notices would be issued to all of the more than 10,000 locally hired foreign nationals, with terminations effective in August.
In addition, notices will be sent to U.S. diplomats and civil servants working abroad for the agency, which has been the primary U.S. foreign aid provider for over six decades.
Trump has accused USAID—without evidence—of being plagued by fraud and controlled by “radical left lunatics,” while Musk has falsely labeled it a “criminal” organization.
As a result of the agency’s closure, thousands of its employees were placed on administrative leave and received layoff notices on Friday, while hundreds of contractors were dismissed, and over 5,000 aid programs were terminated. This disruption threatens critical humanitarian aid efforts relied upon by millions worldwide.
USAID operates missions in over 60 countries, with a significant portion of its funding allocated to humanitarian assistance and health programs.