Internal email highlights how CDAO is responding to DOGE-inspired workforce reduction campaign

Officials leading the Pentagon’s Chief Digital and AI Office are exploring possible exemptions to the ongoing hiring freeze that Defense Secretary Pete Hegseth recently instituted as part of a broader effort to shrink the department’s civilian workforce, according to an internal unclassified email obtained by DefenseScoop.

Margie Palmieri, the longtime senior CDAO official who’s temporarily heading the office until the Trump administration names a new chief, sent an email to her colleagues Thursday that provides insight into how implementation of President Donald Trump’s DOGE directive across the federal government is impacting the military’s artificial intelligence hub.

DOGE is an acronym for Department of Government Efficiency, an initiative that’s being led by billionaire Trump adviser Elon Musk.

“We recognize the many moving pieces [with regards to] personnel moves in CDAO and appreciate your patience and support as we respond to emerging guidance and events,” Palmieri wrote.

Agency leaders across the federal government have been scurrying to carry out the mandate Trump announced early into his second administration to “maximize efficiency” via a massive, rapid reduction of the civilian workforce and major budget shifts. Certain moves agencies are pursuing to meet the objectives are now under litigation — leaving some federal employees’ work statuses in limbo.

Following Trump’s order, Pentagon leaders are planning to cut more than 50,000 of the DOD’s 900,000-plus civilian personnel, via the application of three primary mechanisms: the deferred resignation program that employees can opt to participate in; removing probationary staff; and setting a temporary hiring pause.

In Thursday’s email, Palmieri pointed out that “DoD remains in a hiring freeze,” but that on Wednesday officials from the Personnel and Readiness directorate “provided additional guidance on exemptions.” She noted that those include for “positions essential to national security to be filled by non-competitive reassignment, detail, conversion, term or temporary employees, reemployed annuitants, and Intergovernmental Personnel Act employees.”

“DoD is still limited in the number of people it can hire, but the new guidance gives us more flexibility to request exemptions. We will work with hiring managers to determine if any outstanding hires fit into this category, and we expect further guidance to be forthcoming for additional exemptions,” Palmieri wrote.

In recent weeks, CDAO spokespersons have repeatedly declined to share estimates for how many of the office’s employees are part of the pool of more than 20,000 who were granted approval to depart through the deferred resignation program — or its number of recently hired or promoted workers who are in a trial period that gives them probationary status.

Palmieri wrote in her email Thursday that the office has “not terminated any probationary employees” so far.

Elsewhere in the email, she noted that shortly after his Senate confirmation and swearing in last week, Deputy Secretary of Defense Stephen Feinberg “has been getting up to speed on the POM-26 [budget] relook and held a great first Unders meeting” with the principal staff assistants.

She also highlighted “front office changes” happening at CDAO, with transitions planned to play out over the next month.

Specifically, Chris Skaluba, who serves as the executive director and acting principal deputy CDAO, and the office’s Chief of Staff Amy Schafer are exiting in early April. Both entered their positions about a year ago.

Palmieri confirmed that Danny Holtzman will step into the acting principal deputy role. According to CDAO’s website, Holtzman was serving as deputy executive director and acting deputy CDAO for acquisition and assurance. Palmieri said that Andy Mapes will join the front office to cover executive director and chief of staff duties. The email did not provide information about Mapes’ expertise or where the official is moving from.

“We continue to have incredible advocacy and support for the work we do at multiple levels inside and outside DoD,” Palmieri also wrote.

DefenseScoop has reached out to CDAO spokespersons for comment.