() A memo from the White House on Wednesday gave federal agencies two weeks to submit plans for a potential reduction in positions.

The memo, issued by the Office of Management and Budget and the Office of Personnel Management, instructed agencies to look at positions not typically designated as essential by March 13.

It also called for the potential closure or consolidation of regional field offices. Agency heads were asked to consider whether the entire agency or parts of it should be eliminated.

The directive does not apply to law enforcement, the military, national security agencies or the postal service.

Tesla and SpaceX CEO Elon Musk has said that without such decisions, the United States could go bankrupt.

“We’re cutting down the size of government,” President Donald Trump said. “We have to. We’re bloated. We’re sloppy. We have a lot of people that aren’t doing their job.”

The American Federation of Government Employees union is sounding the alarm and warned laying off “potentially hundreds of thousands of federal workers will mean fewer services at higher costs for the American taxpayer.”

The union said layoffs could lead to longer waits at Veterans Affairs hospitals and increased risks for air travelers and could also affect food inspections and health and scientific research.

Federal firings

Under direction from Musk’s Department of Government Efficiency, agencies have already fired thousands of workers. And, earlier this month, White House press secretary Karoline Leavitt told that approximately 77,000 federal employees have accepted a deferred resignation offer.

On Monday, the U.S. Agency for International Development placed more than 4,000 staffers worldwide on leave after DOGE dismantled the agency. Late Tuesday, the agency’s employees were told they had 15 minutes to collect their belongings from their offices.

Reuters reported the Department of Interior was recently informed of an upcoming 10-40% workforce reduction.
The General Services Administration, which helps manage federal buildings, also told workers this week that staff cuts were forthcoming.

The Associated Press contributed to this report.