Business

Inside Elon Musk’s Plan for DOGE to Slash Government Costs

Published

10 months ago

January 12, 2025

Inside Elon Musk’s Plan for DOGE to Slash Government Costs

An unpaid group of billionaires, tech executives and some disciples of Peter Thiel, a powerful Republican donor, are preparing to take up unofficial positions in the U.S. government in the name of cost-cutting.

As President-elect Donald J. Trump’s so-called Department of Government Efficiency girds for battle against “wasteful” spending, it is preparing to dispatch individuals with ties to its co-leaders, Elon Musk and Vivek Ramaswamy, to agencies across the federal government.

After Inauguration Day, the group of Silicon Valley-inflected, wide-eyed recruits will be deployed to Washington’s alphabet soup of agencies. The goal is for most major agencies to eventually have two DOGE representatives as they seek to cut costs like Mr. Musk did at X, his social media platform.

This story is based on interviews with roughly a dozen people who have insight into DOGE’s operations. They spoke to The Times on the condition of anonymity because they were not authorized to speak publicly.

On the eve of Mr. Trump’s presidency, the structure of DOGE is still amorphous and closely held. People involved in the operation say that secrecy and avoiding leaks is paramount, and much of its communication is conducted on Signal, the encrypted messaging app.

Mr. Trump has said the effort would drive “drastic change,” and that the entity would provide outside advice on how to cut wasteful spending. DOGE itself will have no power to cut spending — that authority rests with Congress. Instead, it is expected to provide recommendations for programs and other areas to cut.

But parts of the operation are becoming clear: Many of the executives involved are expecting to do six-month voluntary stints inside the federal government before returning to their high-paying jobs. Mr. Musk has said they will not be paid — a nonstarter for some originally interested tech executives — and have been asked by him to work 80-hour weeks. Some, including possibly Mr. Musk, will be so-called special government employees, a specific category of temporary workers who can only work for the federal government for 130 days or less in a 365-day period.

The representatives will largely be stationed inside federal agencies. After some consideration by top officials, DOGE itself is now unlikely to incorporate as an organized outside entity or nonprofit. Instead, it is likely to exist as more of a brand for an interlinked group of aspirational leaders who are on joint group chats and share a loyalty to Mr. Musk or Mr. Ramaswamy.

“The cynics among us will say, ‘Oh, it’s naïve billionaires stepping into the fray.’ But the other side will say this is a service to the nation that we saw more typically around the founding of the nation,” said Trevor Traina, an entrepreneur who worked in the first Trump administration with associates who have considered joining DOGE.

“The friends I know have huge lives,” Mr. Traina said, “and they’re agreeing to work for free for six months, and leave their families and roll up their sleeves in an attempt to really turn things around. You can view it either way.”

DOGE leaders have told others that the minority of people not detailed to agencies would be housed within the Executive Office of the President at the U.S. Digital Service, which was created in 2014 by former President Barack Obama to “change our government’s approach to technology.”

DOGE is also expected to have an office in the Office of Management and Budget, and officials have also considered forming a think tank outside the government in the future.

Mr. Musk’s friends have been intimately involved in choosing people who are set to be deployed to various agencies. Those who have conducted interviews for DOGE include the Silicon Valley investors Marc Andreessen, Shaun Maguire, Baris Akis and others who have a personal connection to Mr. Musk. Some who have received the Thiel Fellowship, a prestigious grant funded by Mr. Thiel given to those who promise to skip or drop out of college to become entrepreneurs, are involved with programming and operations for DOGE. Brokering an introduction to Mr. Musk or Mr. Ramaswamy, or their inner circles, has been a key way for leaders to be picked for deployment.

That is how the co-founder of Loom, Vinay Hiremath, said he became involved in DOGE in a rare public statement from someone who worked with the entity. In a post this month on his personal blog, Mr. Hiremath described the work that DOGE employees have been doing before he decided against moving to Washington to join the entity.

“After 8 calls with people who all talked fast and sounded very smart, I was added to a number of Signal groups and immediately put to work,” he wrote. “The next 4 weeks of my life consisted of 100s of calls recruiting the smartest people I’ve ever talked to, working on various projects I’m definitely not able to talk about, and learning how completely dysfunctional the government was. It was a blast.”

These recruits are assigned to specific agencies where they are thought to have expertise. Some other DOGE enrollees have come to the attention of Mr. Musk and Mr. Ramaswamy through X. In recent weeks, DOGE’s account on X has posted requests to recruit a “very small number” of full-time salaried positions for engineers and back-office functions like human resources.

The DOGE team, including those paid engineers, is largely working out of a glass building in SpaceX’s downtown office located a few blocks from the White House. Some people close to Mr. Ramaswamy and Mr. Musk hope that these DOGE engineers can use artificial intelligence to find cost-cutting opportunities.

The broader effort is being run by two people with starkly different backgrounds: One is Brad Smith, a health care entrepreneur and former top health official in Mr. Trump’s first White House who is close with Jared Kushner, Mr. Trump’s son-in-law. Mr. Smith has effectively been running DOGE during the transition period, with a particular focus on recruiting, especially for the workers who will be embedded at the agencies.

Mr. Smith has been working closely with Steve Davis, a collaborator of Mr. Musk’s for two decades who is widely seen as working as Mr. Musk’s proxy on all things. Mr. Davis has joined Mr. Musk as he calls experts with questions about the federal budget, for instance.

Other people involved include Matt Luby, Mr. Ramaswamy’s chief of staff and childhood friend; Joanna Wischer, a Trump campaign official; and Rachel Riley, a McKinsey partner who works closely with Mr. Smith.

Mr. Musk’s personal counsel — Chris Gober — and Mr. Ramaswamy’s personal lawyer — Steve Roberts — have been exploring various legal issues regarding the structure of DOGE. James Burnham, a former Justice Department official, is also helping DOGE with legal matters. Bill McGinley, Mr. Trump’s initial pick for White House counsel who was instead named as legal counsel for DOGE, has played a more minimal role.

“DOGE will be a cornerstone of the new administration, helping President Trump deliver his vision of a new golden era,” said James Fishback, the founder of Azoria, an investment firm, and confidant of Mr. Ramaswamy who will be providing outside advice for DOGE.

Despite all this firepower, many budget experts have been deeply skeptical about the effort and its cost-cutting ambitions. Mr. Musk initially said the effort could result in “at least $2 trillion” in cuts from the $6.75 trillion federal budget. But budget experts say that goal would be difficult to achieve without slashing popular programs like Social Security and Medicare, which Mr. Trump has promised not to cut.

Both Mr. Musk and Mr. Ramaswamy have also recast what success might mean. Mr. Ramaswamy emphasized DOGE-led deregulation on X last month, saying that removing regulations could stimulate the economy and that “the success of DOGE can’t be measured through deficit reduction alone.”

And in an interview last week with Mark Penn, the chairman and chief executive of Stagwell, a marketing company, Mr. Musk downplayed the total potential savings.

“We’ll try for $2 trillion — I think that’s like the best-case outcome,” Mr. Musk said. “You kind of have to have some overage. I think if we try for two trillion, we’ve got a good shot at getting one.”

Click to comment

Business

Warner Bros. Discovery modifies David Zaslav’s employment contract — again

Published

15 hours ago

November 14, 2025

Press Room

Warner Bros. Discovery modifies David Zaslav’s employment contract — again

Warner Bros. Discovery has modified Chief Executive David Zaslav’s contract for a second time this year to prepare for the company’s proposed breakup.

This month’s alterations were outlined in an SEC filing on Thursday — a week before initial bids are due in the Warner Bros. Discovery auction. Industry sources expect Paramount, Comcast and Netflix to make offers for the embattled entertainment company that owns HBO, CNN, Food Network and the storied Warner Bros. movie and television studios.

Warner Bros. Discovery declined to comment.

The sale kicked off in September when David Ellison-led Paramount made an unsolicited offer for Warner Bros. Discovery — a month after Ellison and RedBird Capital Partners had acquired Paramount from the Redstone family in an $8-billion deal. The company since has made at least three bids — but all were unanimously rejected by the Warner Bros. Discovery board, which viewed them as too low.

Paramount’s most recent solicitation for Warner Bros. Discovery was for $23.50 per share, which would value the company at about $58 billion.

The external jockeying for Warner Bros. Discovery set the stage for Zaslav and the Warner board to amend his employment agreement. The contract was revised Nov. 7 to clarify that various spin-off configurations would result in the same incentives for Zaslav.

Previously, his contract was amended to outline his compensation and incentives should the Warner Bros. studios and HBO Max spin off from the parent company, as envisioned when Warner announced its breakup plans in June. At the time, Zaslav planned to stay on to run the studios and streaming company, which would be called Warner Bros. in a nod to its historic roots and the pioneering days of the movie industry.

The plan was for the company’s two dozen cable networks, including CNN, TNT, Animal Planet and TLC, to remain behind and the company renamed Discovery Global.

The company is forging ahead with its breakup plans. However, it now plans to spin off the cable channels (Discovery Global) and keep the studios, HBO and the HBO Max streaming service as the surviving corporate entity (Warner Bros.).

“The amendment clarifies that if the separation is achieved by retaining Warner Bros. and spinning off Discovery Global (a ‘Reverse Spinoff’) rather than spinning off Warner Bros. … the Reverse Spinoff will be treated in the same manner … for all purposes of the Zaslav arrangements,” the filing said.

Previously, the company had envisioned that the split would be complete by Dec. 31, 2026. But a full-blown auction could upset those plans — and the transaction could close at a later date.

Zaslav’s contract was modified to extend his employment through December 2030. Previously, his contract was set to expire in December 2027.

“This extension is intended to secure Mr. Zaslav’s leadership of WBD for the same period that we had contracted to have him serve as the chief executive officer of Warner Bros. following a separation,” the filing said.

The Wall Street Journal was the first to report that nonbinding preliminary bids for the company are due Nov. 20.

Business

Economic angst forces L.A. shoppers to find ways to spend less for the holidays

Published

1 day ago

November 13, 2025

Press Room

Economic angst forces L.A. shoppers to find ways to spend less for the holidays

Shoppers in Los Angeles are turning to more affordable brands, seeking deals and making their own presents to save money this holiday season, as many tighten their purse strings in anticipation of a weak economy.

The average projected holiday spend by Los Angeles shoppers was $1,627, according to Deloitte’s 2025 holiday retail survey. That’s above the national average but a 14% dip from 2024.

“What we’re hearing is that shoppers here in the L.A. metro area — and nationwide — are feeling uncertain about where the economy is headed,” said Rebecca Lohrey, Deloitte audit and assurance partner.

Californians have struggled more than residents of most other states with the stubbornly high price of housing. At the same time, the often-changing tariff regime coming out of Washington has consumers concerned that prices will continue to rise.

Widespread and high-profile job cuts in the tech industry, which has for decades been one of the state’s most reliable employers, have also helped shake consumer confidence. Some consumers surveyed by KPMG earlier in the year had planned to spend more this holiday season, in part, to get ahead of inflation.

Three-quarters of the shoppers surveyed expect higher prices on holiday goods, and 62% of Los Angeles shoppers expect the economy to weaken in the year ahead, nearly twice as many as a year earlier.

“L.A. shoppers are more likely to hunt for deals, give homemade gifts, reuse wrapping and use tools like social media and AI to plan their purchases,” Lohrey said. “Even with tighter budgets, they’re finding smart, creative ways to make the season joyful without overspending.”

Tariffs, inflation and geopolitical shifts are causing severe economic uncertainty for consumers.

Nationally, 57% of those surveyed expected the U.S. economy to weaken in the next six months, the most negative outlook since Deloitte started tracking economic sentiment in 1997.

This echoes what big box retailers and consumer goods giants have been saying. In August, Walmart said that as it replenishes inventory at tariff prices, it has continued to see costs increase each week, which it expects to continue through the end of the year. PepsiCo said it was introducing products at a cheaper price as consumer budgets remain constrained.

“Not surprisingly, we see more adjustments in middle- and lower-income households than we do with higher-income households,” Douglas McMillon, Walmart’s chief executive, said in an earnings call.

With consumers becoming more value-conscious, the Deloitte survey found that 88% of L.A. shoppers are seeking deals, and 78% are opting for affordable brands and retailers.

This has also meant that about 35% of L.A. shoppers plan on turning to generative AI tools to compare and find the best deals and generate shopping lists.

Consumer price inflation in Los Angeles stood at 3.5% in September compared with the previous year, higher than the national average of 3%, according to the Bureau of Labor Statistics.

With price increases, 6 in 10 local shoppers are turning to gift cards instead of gifts this holiday season, willing to spend an average of $268 on the cards.

Clothing and accessories are the top categories for those L.A. shoppers who say they’ll self-gift this year.

Business

Developer plans to add a hotel and hundreds of residences to L.A. Live

Published

2 days ago

November 12, 2025

Press Room

Developer plans to add a hotel and hundreds of residences to L.A. Live

The owners of Crypto.com Arena and L.A. Live in downtown Los Angeles have filed plans with the city to potentially add another tower to their multibillion-dollar sports and entertainment complex.

AEG last week proposed a 49-story high-rise that would hold a hotel, residences, bars and restaurants.

The tower would rise across Olympic Boulevard from L.A. Live on a corner lot on Georgia Street now used by AEG for parking.

Many planned residential and other commercial projects in Los Angeles have stalled prior to construction in recent years as developers face economic headwinds, including unfavorable interest rates and rising costs of materials and labor.

AEG, too, will not be breaking ground on this project in the near future, a company representative said.

The company’s recent land-use application, which outlined the plans, is just a “first step for a potential development” on the company’s property at 917 W. Olympic Blvd., spokesman Michael Roth said. “AEG remains optimistic about downtown’s long-term prospects and is positioning the site for future development when conditions improve.”

The application calls for a large-scale development with 364 dwelling units and 334 hotel rooms.

The 783,427-square-foot building would also include bars and restaurants on levels 1, 5 and 6, along with a restaurant/nightclub on the eighth floor.

Residents and hotel guests would share an amenity deck with a restaurant, bar, pool, spa, club room, fitness area and a dining terrace. The complex would have 666 parking spaces.

In September, the City Council approved a $2.6-billion expansion of the Convention Center despite warnings from its advisors that the project would draw taxpayer funds away from essential city services for decades to come. Mayor Karen Bass and a majority of the council believe that the project will create thousands of jobs and boost tourism and business activity, making the city more competitive on the national stage.

The new construction will connect the two existing south and west exhibit halls by adding 190,000 square feet of space to create one contiguous hall with more than 750,000 square feet, and will add 39,000 square feet of meeting room space and 95,000 square feet of multipurpose space.

AEG is advising the developer, Plenary Americas, on the project.

Los Angeles-based AEG is one of the world’s biggest venue and event companies, with more than 20,000 employees. The company was founded in 1995 when Denver billionaire investor Philip Anschutz bought the Los Angeles Kings, and in 1999 it opened the downtown arena then known as the Staples Center, now Crypto.com Arena.

Among AEG’s recent developments is the IG Arena in the outer citadel of Nagoya Castle in Nagoya, Japan, where sports and entertainment events, including sumo wrestling, are held.