"Not whacking enough" — Shark Tank investor Kevin O'Leary weighs in on FAA layoffs and Musk's cost-cutting strategy

Shark Tank investor Kevin O’Leary commented on the FAA’s recent workforce cuts, saying in a CNN interview on February 18, 2025, that the reductions don’t go far enough.

"No, no, I think the issue is they're not whacking enough," he said.

The Shark Tank investor argued that deeper reductions are necessary to eliminate inefficiencies and modernize government agencies. His stance aligns with broader discussions on cost-cutting measures, including those undertaken by Elon Musk at his companies.

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Shark Tank Kevin O’Leary supports deeper FAA cuts amid cost-cutting debate

The case for deeper cuts

O’Leary outlined a private equity approach to restructuring struggling organizations, arguing that when an entity is financially burdened, it is often necessary to reduce the workforce beyond initial estimates. The Shark Tank investor explained,

"There's this concept in private equity—when you get a bankrupt company and you go in there, you cut 20% more than your initial read."

O’Leary suggested that by making aggressive reductions, an organization can recover and operate more efficiently.

His perspective extended beyond the FAA, as he described government agencies as inefficient and in need of substantial restructuring. Illustrating his belief that government spending should be reduced significantly, he stated,

"Fat like a chicken, all of these agencies are like big fat chickens dripping over barbecues of fat."

According to the Shark Tank investor, such reductions are necessary to allocate resources toward technological upgrades, such as modernizing the FAA’s outdated COBOL-based systems.

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The risk of overcutting

While O’Leary maintained that government agencies should continue eliminating inefficiencies, other panelists in the discussion raised concerns about potential unintended consequences. Political consultant Karen Finney referenced reports that certain layoffs had to be reversed because the dismissed employees possessed essential knowledge. She noted,

"And literally Elon said, oops, we gotta rehire them because nobody knows how to do what these people know how to do."

This raised broader concerns about whether aggressive cost-cutting could lead to operational disruptions. Scott Jennings, a political strategist and writer, acknowledged the possibility of errors in the process but suggested that the overall objective of reducing government size justified occasional miscalculations. He stated,

"It's okay, I actually think it's okay if they run into a stumble here or there because the project is so massive."

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Economic and social impacts

The broader impact of mass layoffs on local economies was also debated. Finney highlighted that in some regions, federal employment plays a critical role in sustaining local economies. She stated,

"30,000 government employees might be laid off. It will destroy the economy of Kansas City."

The Shark Tank investor responded by questioning the argument that cities should rely on government employment for economic stability. He questioned the expectation that affected employees would react differently, emphasizing that those facing layoffs would naturally express concerns about their job security.

Jennings added to this point by questioning the necessity of government employment for economic viability, stating,

"How many American cities need a massively oversized federal government to stay afloat?"

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