Welcome to this week's Defense Department update. The biggest headline: The Pentagon is moving forward with plans to cut up to 60,000 civilian jobs, or about 8% of its workforce, despite recent court orders halting some terminations.

A senior defense official revealed that nearly 21,000 employees have been approved for deferred resignations, with most expected to leave by year's end. The department is also maintaining a hiring freeze, foregoing about 6,000 new hires monthly.

While efforts to terminate 5,400 probationary employees are on hold due to litigation, officials stress they're committed to complying with court orders. Defense Secretary Pete Hegseth may consider additional downsizing tools like separation incentives or reductions in force to meet targets.

The official stated, "The 5% to 8% reduction is not drastic. It's one the secretary is confident can be done without negatively impacting readiness."

In other news, the department issued new guidance on "situational telework" as it implements the Trump administration's mandate for in-person work. The memo emphasizes that situational telework should be used judiciously and only when serving a "compelling Agency need."

Meanwhile, Congress is racing to finalize appropriations for fiscal year 2025 before the current continuing resolution expires on March 14. Failure to act could trigger a government shutdown or even sequestration cuts by April 30.

The FY2025 National Defense Authorization Act, signed in December, authorizes $143.8 billion for research and development, including $17.5 billion for science and technology programs. It also establishes new initiatives on artificial intelligence and enhances oversight of major acquisition programs.

Looking ahead, the department faces key fiscal milestones throughout 2025, including debt ceiling negotiations and potential budget reconciliation efforts in Congress.

For businesses and contractors, these developments signal a period of uncertainty. The workforce reductions and return-to-office policies may impact operational capacity and contract execution. However, sustained R&D funding presents opportunities in emerging technology areas.

State and local governments should prepare for potential economic impacts if significant job cuts materialize in their regions. International partners will be watching how these internal changes affect U.S. defense capabilities and commitments abroad.

Citizens can stay informed by following official DOD channels and contacting their representatives as budget negotiations continue. For more details on these stories, visit defense.gov or follow @DeptofDefense on social media.

That's all for this update. Stay tuned for more developments as the department navigates these challenges in the coming weeks and months.