Commerce Secretary Howard Lutnick Critiques Elon Musk's Approach to Government Cuts

Howard Lutnick, who previously collaborated closely with Elon Musk in the government, now distances himself from the tech mogul.

Lutnick, involved with Musk during his time leading the Department of Government Efficiency, has begun voicing criticism over Musk's drastic employee reductions at DOGE.

In a recent episode of 'The Axios Show,' Lutnick explained to host Mike Allen that Musk applied a similar strategy to DOGE as he did with Twitter. He rapidly reduced the workforce by 80%, thinking the method would suit governmental settings as well.

Lutnick remarked, "Elon appeared to be influenced by external goals. Government staff work adequately, but trimming it down by 10 to 15% would be sensible. Cabinet secretaries should take time to evaluate and make thoughtful reductions."

He argued that focusing on financial inefficiencies could have been more productive, citing a large grant given to study semiconductors under a previous administration as an example of potential 'waste, fraud, and abuse.'

"Consider how many people $7.4 billion equates to," said Lutnick. "The real aim should have been addressing inefficiencies instead of large-scale layoffs."

Though Musk was once a trusted advisor to the President, Lutnick's perspective on him has evidently changed following their reopening of ties.

Background and Agreements

Lutnick mentioned earlier this year on Fox News' 'Jesse Watters Primetime' that he played a role in bringing Musk onboard. They met in October 2024, where Musk committed to eliminating $1 trillion in inefficiencies.

Lutnick elaborated, "Elon was to erase wasteful spending, and concurrently, we’d abolish costly tax loopholes to boost revenue by $1 trillion. The aim, under Trump's administration, was to achieve a balanced budget."

In March, when NBC's Kristen Welker queried Lutnick on who was steering his agency, Lutnick replied, "I have the most skilled businessman and technologist by my side."

"If anyone wonders about my thoughts," he added, "I'm grateful for Musk’s involvement and assistance."

Musk, having terminated around 200,000 federal employees while at DOGE, faces criticism from management professionals regarding his tactics.

Neither the Department of Commerce nor Musk's spokespersons have issued statements in response to requests for comments.