For over a decade, Elon Musk has been hailed as a genius, disruptor, and one of Silicon Valley’s most influential figures. But in 2025, that image is beginning to crack. Following brutal layoffs across Tesla, X (formerly Twitter), and SpaceX—and more recently, as the architect of sweeping U.S. government job cuts—Musk is now facing questions about whether he himself could be next in line to face the consequences of his aggressive tactics.
This shift in perception comes at a time when the U.S. Department of Justice (DOJ) is facing severe budget cuts, undermining its regulatory capacity. Meanwhile, Musk’s political alliances are fraying, most notably with Donald Trump. And as tensions rise, so does the speculation: could the billionaire’s era of unchecked power be reaching its limits?
Mass Layoffs: From Tech to Government
Musk’s layoff spree began with his takeover of Twitter in late 2022. After rebranding the platform as X, he gutted more than 80% of its workforce, eliminating roles across engineering, trust and safety, content moderation, and communications. The result was an immediate drop in platform stability and advertiser confidence.
Tesla soon followed. In 2024–25 alone, over 14,000 employees were let go globally. Musk cited “efficiency” as the motivation behind slashing teams responsible for charging infrastructure, design, and R&D. SpaceX, too, made significant cuts to its staff, reportedly as part of a wider restructuring.
But the layoffs didn’t end there. In one of the most controversial moves of the year, Musk—appointed to lead the Trump administration’s Department of Government Efficiency (DOGE)—oversaw the removal of over 172,000 federal workers in February 2025 alone. According to The Financial Express (13 February 2025), this marked the highest number of U.S. layoffs that month, spearheaded by what critics have labelled Musk’s “slash-and-burn” strategy.
The government layoffs affected employees across departments like Health and Human Services, Veterans Affairs, Agriculture, and the IRS. A Pentagon-inspired algorithm, the “Workforce Reshaping Tool”, was used to automate decisions—often without due process. Some workers were wrongfully terminated and later reinstated following legal intervention. Lawsuits continue to mount.
Trump Fallout and Political Blowback
If Musk thought he could rely on political backing to weather the storm, that bet may have backfired. In early June, Donald Trump publicly criticised Musk after he spoke out against the former president’s immigration and economic policies.
“Very disappointed. Don’t know if we’ll have a good relationship anymore,” Trump said in an interview with Newsmax, as reported by NDTV on 5 June 2025.
Musk, never one to back down, responded on X: “I gave Trump’s campaign X advertising for free, helped him get his account reinstated, and was falsely accused of supporting Biden. The level of ingratitude is staggering.”
The feud is significant. Tesla’s consumer base includes a large number of conservative-leaning Americans. Alienating them could have financial repercussions, particularly at a time when Tesla’s performance is already under scrutiny. According to The Financial Express (29 May 2025), the company’s profits plunged by 71% in Q1 2025, with its stock value falling 41%.
DOJ Cuts: A Convenient Loophole?
While Musk’s empire faces turbulence, the DOJ—traditionally a key check on corporate overreach—is being defanged by budget cuts. The reductions, part of a federal spending agreement, are expected to stall investigations into antitrust cases, labour law violations, and tech monopolies.
Policy analyst Lisa Jennings, from the Brookings Institution, told media outlets: “When the watchdog is underfed, powerful CEOs tend to stretch their limits. This makes public accountability and shareholder action more important than ever.”
Indeed, the timing couldn’t be more advantageous for Musk. With federal oversight in retreat, his most controversial decisions may go unchecked—at least temporarily.
Musk’s involvement in multiple ventures is also raising eyebrows. He currently leads or has major influence over Tesla, X, SpaceX, Neuralink, xAI, and The Boring Company. Insiders say the multi-tasking is taking a toll. Product rollouts at Tesla are delayed, platform engagement on X is stagnant, and Neuralink’s human trials are facing mounting ethical scrutiny.
“He’s firing teams while launching startups,” wrote Wired tech analyst Marcus Levin. “Musk is creating more disruption than his companies can manage.”
The backlash is no longer limited to media. Tesla shareholders have begun voicing concerns over Musk’s divided focus and generous compensation packages. Proposals have been raised for stricter board oversight and even clawback clauses in future agreements.
Employee Revolt and Public Scorn
Musk’s handling of layoffs hasn’t just alienated investors—it has enraged employees and the general public. Former staff from X have filed legal complaints for being let go without notice or severance. Tesla workers in Texas and California are now pushing for unionisation.
On social media, backlash is relentless. After Musk congratulated IPL team Royal Challengers Bangalore (RCB) for their playoff win—posting, “Well done RCB. Congratulations. All the very best for the future.”—critics didn’t hold back.
One viral reply read: “RCB’s performance is high pressure, but Musk sir, the engineers at Tesla are feeling even more pressure waiting for their jobs to come back.”
Public protests have also intensified. Demonstrators have staged walkouts outside Tesla showrooms and government buildings, accusing Musk of destroying livelihoods under the guise of efficiency.
So, Is Musk on the Chopping Block?
Not quite—but he’s no longer invincible. Musk remains a dominant shareholder in most of his companies, making formal removal unlikely in the short term. However, the tide appears to be turning.
Legal action, declining profits, political isolation, and shareholder unrest are all converging. The DOJ’s weakened state may offer a temporary buffer, but the deeper threat lies within—disillusioned employees, distrustful investors, and a public that’s running out of patience.
