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Home Business

Mark Cuban Offers to Fund Government Tech Unit Cut Overnight

Billionaire Steps In After Abrupt Layoffs

by Anochie Esther
March 4, 2025
in Business, News, Tech
Reading Time: 3 mins read
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Mark Cuban

Image Credits: Techcrunch

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Billionaire investor Mark Cuban has stepped into the latest government tech controversy, offering to support displaced federal workers who were unexpectedly laid off in a late-night purge of the General Services Administration’s (GSA) 18F technology unit.

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Cuban took to the social network Bluesky on Saturday, urging the former government engineers and designers to seize the moment and form their own consulting company. His post quickly gained traction, as many saw it as a potential way to fight back against the drastic cuts while continuing their mission of improving government technology.

“If you worked for 18F and got fired, group together to start a consulting company,” Cuban wrote. “It’s just a matter of time before DOGE needs you to fix the mess they inevitably created. They will have to hire your company as a contractor to fix it. But on your terms. I’m happy to invest and/or help.”

Cuban’s proposal has sparked conversations about whether former government tech workers could reshape civic technology from the outside, potentially forcing the government to rely on private-sector expertise—including the very workers it just dismissed.

What Happened? 18F Cut in a Late-Night Move

The layoffs occurred as part of a directive from the Trump administration’s Department of Government Efficiency (DOGE), led by Elon Musk. The cuts, which took place at approximately 1 a.m. Eastern Time on Saturday, affected around 70 employees of the 18F technology unit—a group dedicated to helping federal agencies build, buy, and manage tech products more efficiently.

Among the projects 18F worked on was Login.gov, a secure digital identity system used by agencies like the Social Security Administration and the Department of Veterans Affairs. The unit had long been considered a non-partisan group of civil servants, focused on saving taxpayer dollars by modernizing government technology.

A statement from 18F after the layoffs underscored their commitment to efficiency and effectiveness, stating:
“18F has worked on hundreds of projects, all designed to make government technology not just efficient but effective, and to save money for American taxpayers.”

This was not the first round of layoffs for the group. In February, GSA cut two dozen 18F employees, primarily probationary staffers, as part of a broader effort to shrink the federal workforce.

DOGE’s Push for Government Downsizing

The latest layoffs appear to be a direct result of DOGE’s aggressive cost-cutting strategy, spearheaded by Elon Musk. DOGE has been working rapidly to eliminate agencies and reduce federal employment, though the speed of these moves has raised concerns—even among Musk’s own team.

Some employees received cryptic emails late Friday night from DOGE with the subject line, “What did you do last week? Part II.” The emails asked workers to list their accomplishments by Monday, and similar messages were reportedly sent to staff at the State Department, IRS, and National Institutes of Health (NIH).

Musk himself has acknowledged unintended consequences of the department’s rapid changes. In a recent example, he admitted that DOGE had “accidentally” canceled funding for Ebola prevention through the U.S. Agency for International Development (USAID). Though the mistake was quickly reversed, public health experts say funding has not been fully restored.

Cuban’s offer to help former 18F workers launch a private consulting firm could turn government downsizing into an unexpected business opportunity.

Some industry experts speculate that a privatized version of 18F could become an essential contractor for the government, much like how companies such as Palantir and Accenture provide tech solutions for federal agencies.

A former 18F member suggested an irreverent name for the new company, posting on Bluesky:
“Name the new company 18FU.”

The sentiment captures the frustration many feel about the way the layoffs were handled—yet also highlights the potential for these skilled workers to reclaim control of their work and expertise.

As the dust settles from these abrupt layoffs, former 18F employees are still processing the overnight dismantling of their unit. However, their statement made it clear:

“We aren’t done yet.”

The coming weeks will determine whether displaced government workers band together to build a private consulting firm, whether Cuban follows through on his investment, and whether the government ultimately finds itself forced to rely on the very experts it just let go.

If that happens, it would be a striking reversal of the Trump administration’s goal of shrinking the public workforce—instead, it could create a new powerhouse of government tech expertise, operating from the private sector on its own terms.

Tags: #government techAdministrationLayoffsMark CubanTrump
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