DOGE Staffer Admits Elon Musk's Cost-Cutting Agency Failed to Reduce Federal Deficit

DOGE, the Department of Government Efficiency led by Elon Musk, admitted in a deposition that it did not achieve its goal of reducing the federal deficit. The agency initially aimed to cut up to $2 trillion from the federal budget but only managed to save $200 billion in 'zombie payments'. A DOGE employee acknowledged that the cost-cutting efforts fell far short of expectations.

Experts argue that most federal spending does not stem from salaries, and the cost-cutting measures may have led to higher overall spending due to increased contract replacements and administrative expenses. A Cato Institute report noted that a 10% cut in the federal workforce would result in only $40 billion in savings.

Meanwhile, Bitdeer announced the release of a new Scrypt-based mining rig, the SEALMINER DL1 Air, which supports simultaneous mining of Litecoin and Dogecoin. This marks a strategic shift for the company from its traditional focus on Bitcoin.

Why Did the Cost-Cutting Measures Fail?

DOGE's cost-cutting measures, under Elon Musk's leadership, claimed to eliminate more than 300,000 federal employees and cancel 13,440 contracts. However, economists and management experts highlight that these cuts did not reduce the deficit and may have increased costs. A Cato Institute report found that most federal spending is not driven by salaries, so workforce reductions yielded only $40 billion in savings for a 10% cut.

A Yale University Budget Lab report estimated that if 22,000 IRS employees were to leave, the agency could lose $8.5 billion in revenue in 2026. Over a decade, this loss could reach nearly $198 billion. IRS employees reported that the layoffs have decreased efficiency, leading to longer call times and slower paperwork processing.

What Are the Long-Term Implications for the Federal Workforce?

The cost-cutting efforts have raised concerns about the long-term implications for the federal workforce. Scott Kupor, head of the Office of Personnel Management, acknowledged that the workforce reductions may have been excessive. The administration plans to rehire several positions to address skill gaps.

Cybersecurity experts have also warned that DOGE had access to U.S. payroll systems, creating risks for data security. The mass layoffs caused by DOGE could lead to long-term financial pressures and reduced government efficiency.

How Did Markets React to Bitdeer's New Product Launch?

Bitdeer's stock price surged 8.6% to $8.15 after the company released the SEALMINER DL1 Air miner. The device, designed for Scrypt-based cryptocurrencies, enables efficient Litecoin and Dogecoin mining with adaptable power settings and superior efficiency.

The SEALMINER DL1 Air supports three operational modes—Normal, High Hashrate, and Low Power—allowing miners to customize performance. The hardware is built using in-house ASIC chips and an air-cooling design.

Bitdeer's global facilities in the U.S., Norway, Bhutan, and Ethiopia now support enhanced Litecoin and Dogecoin mining operations. The company also raised over $700 million through convertible debt and equity offerings to support further technological advancements and expansion.