Elon Musk's DOGE Staffers Resign, Refuse To 'Dismantle Critical Public Services' — White House Hits Back Saying Trump Won't Be Stopped By Protests And Lawsuits - L3Harris Technologies (NYSE:LHX), Boeing (NYSE:BA)

Over 20 civil service employees have resigned from the Elon Musk-associated Department of Government Efficiency, after refusing to be a part of the dismantling of what they called essential public infrastructure, according to a report on Tuesday.

What Happened: The group, made up of engineers, data scientists, designers, and product managers but not hired directly by Musk, cited their unwillingness to use their technical expertise to “dismantle critical public services,” reported the Associated Press.

They stated that they could no longer meet their obligations to serve the American people and uphold the Constitution under the current administration.

The group cautioned that many individuals Musk recruited to shrink the federal government during President Donald Trump’s administration were political ideologues without the required skills or experience for the job.

This wave of resignations is a setback for Musk and the Republican president's tech-driven effort to overhaul the federal workforce. It comes amid ongoing court challenges aimed at delaying, blocking, or reversing their attempts to dismiss or pressure thousands of government employees out of their jobs.

White House Press Secretary Karoline Leavitt dismissed the move saying, “Anyone who thinks protests, lawsuits, and lawfare will deter President Trump must have been sleeping under a rock for the past several years.” She went on to say that Trump would not be deterred and would continue making the government “more accountable.”

Why It Matters: The resigning staffers were previously part of the United States Digital Service, but their duties were being integrated into DOGE. The efficiency department’s work has cast a long shadow on various segments of the economy.

The U.S. defense sector is now facing fresh uncertainty as the Trump administration sets the foundation for a cost-cutting initiative under DOGE. It was reported earlier that several defense players such as Lockheed Martin Corp., Boeing Co., and L3Harris Technologies Inc. had come under pressure due to the government’s efficiency moves.

The shares of Palantir Technologies Inc., the surveillance and defense software company, witnessed a decline since Wednesday's trading session. In the last 5 days alone, the stock has tanked nearly 30% after reaching heady all-time high levels. Compounding the troubles for Palantir shares is the news of CEO Alex Karp‘s new stock trading plan, 10b5-1, enabling him to sell up to 9.98 million shares by Sep. 12, worth almost $1.23 billion.

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