Layoffs at Social Security Threaten Benefits in 30 to 90 days Warns Former Social Security Administrator

WASHINGTON – The Social Security Administration (SSA) is bracing for significant workforce cuts that could disrupt benefits for nearly 72 million Americans. 

In a move driven by the Trump administration’s controversial cost‐cutting initiative - spearheaded by billionaire Elon Musk and his newly empowered Department of Government Efficiency (DOGE) - SSA plans to eliminate approximately 7,000 jobs, or roughly 12 percent of its current 60,000-employee workforce.

Critics warn that these layoffs risk paralyzing the agency’s ability to process claims, potentially delaying benefit payments for retirees and disabled individuals who rely on Social Security as a lifeline.

“Ultimately, you’re going to see the system collapse, and there will be an interruption of benefits,” Martin O’Malley, former Maryland governor and Social Security commissioner under the Biden administration, told CNBC. “I think that will happen within the next 30 to 90 days.”

O'Malley added, "Beneficiaries have worked their entire lives to earn these benefits - they deserve a system that works reliably.”

Lawmakers on Capitol Hill have voiced similar concerns. Senator Ron Wyden (D-Ore.) was unambiguous in his assessment of Trump and Musk's reason for Social Security layoffs at a Monday news conference. 

“DOGE’s attack on Social Security is, in my view, a first step on the path to privatizing Social Security,” Sen. Ron Wyden, D-OR,  said at the press conference. 

Opponents of the layoffs point to the agency’s already strained infrastructure. Social Security field offices in many rural communities provide indispensable in-person assistance for filing claims and resolving issues. 

Economic analysts agree that delays in Social Security payments could have far-reaching repercussions.

“When benefits are delayed, it isn’t just a personal hardship,” explained an economist at Moody’s Analytics. “Reduced income for millions of beneficiaries can lead to a decline in consumer spending, which is a major engine of our economy. The risk of a cascading slowdown is very real.”

SSA Union leaders and advocacy groups contend that if not implemented with extreme caution, the cuts could further erode an agency already operating at one of its lowest staffing levels in 50 years.

Critics also warn that the coming weeks will be pivotal as protests and internal resignations continue to mount - fueled by fears that DOGE’s aggressive tactics undermine the agency’s mission. 

“The administration’s promise to cut waste cannot come at the expense of a program that millions of Americans depend on,” O’Malley added. “Any disruption in Social Security not only threatens individual financial security but also jeopardizes the broader economy.”

The debate over Trump's DOGE cuts with protecting vital public services shows no signs of abating as both sides prepare for a contentious battle over the future of Social Security.