White House warns layoffs are imminent if shutdown drags on

By Gram Slattery and Nandita Bose

WASHINGTON (Reuters) -The White House warned on Wednesday that worker layoffs are imminent as the first day of the government shutdown unfolded, even as Vice President JD Vance insisted no final decisions have been made.

White House press secretary Karoline Leavitt told reporters government agencies are already preparing for cuts.

"Unfortunately, because the Democrats shut down the government, the president has directed his Cabinet and the Office of Management and Budget is working with agencies across the board to identify where cuts can be made and we believe that layoffs are imminent," Leavitt said.

Vance acknowledged the situation could escalate quickly into layoffs if the shutdown continues even as he said no final decision has been made about whether certain workers will be laid off or furloughed.

"Well, first of all, we haven't made any final decisions about what we're going to do with certain workers," Vance told reporters.

(Reporting by Gram Slattery and Nandita Bose in Washington; Editing by Chris Reese)

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