An aerospace engineer with degrees from the University of Pennsylvania and Stanford, as an early employee of SpaceX, Davis has been working for Musk for over 20 years. Even before Musk's acquisition of Twitter, Davis was deeply involved in a wide range of cost-cutting related matters, and is now a key force behind DOGE's push to reduce government spending.

Author: Li Xiaoyin

Source: Wall Street Journal

You may have heard that Musk has been making waves at DOGE (the Department of Government Efficiency). But did you know? Behind him, there is a key figure who is rapidly driving this "cost-cutting storm".

That person is Steve Davis, a name that makes many major institutions in Washington "shiver with fear".

Remember the sweeping changes after Musk acquired Twitter? Layoffs, squeezing suppliers, adjusting management... Everything was based on the highest principle of "efficiency". And Davis is the core figure behind this "storm".

A former Twitter employee recalled that Davis' focus on costs was "appalling" - he even personally looked into the cleaning service fees of the Atlanta data center.

This "move fast and break things" approach, while bringing efficiency gains, has also sparked a lot of controversy.

Now, Davis is bringing this "Twitter-style" cost-cutting and efficiency model to Washington.

"Ruthless" cost killer, or defender of "efficiency"?

How "swift and decisive" are DOGE's actions? Here are two examples:

1. To "thoroughly investigate waste", DOGE has obtained access to the internal systems of multiple departments, including USAID, the Treasury Department, and the Medicare Oversight Agency.

2. Tom Krause, an official of DOGE, has directly become the Assistant Secretary of the Treasury.

Moreover, according to a USAID official's disclosure to the media, considering that the agency has 10,000 employees and $40 billion in foreign aid, with a huge organizational structure, DOGE is pushing for the dissolution of the agency.

The mastermind behind this also points to Davis. It is reported that Davis maintains regular contact with USAID official Peter Marocco, who is mainly responsible for guiding USAID's work arrangements.

However, DOGE's actions have not been smooth sailing.

Reports indicate that last Saturday, a federal judge in New York temporarily restricted DOGE's access to the Treasury Department's payment system, and will hold a hearing on it this Friday.

Musk's "veteran", loyal for twenty years

Davis' position in DOGE is not surprising to those familiar with Musk.

An aerospace engineer with degrees from the University of Pennsylvania and Stanford, as an early employee of SpaceX, Davis has been working for Musk for over 20 years.

Even before Musk's acquisition of Twitter, Davis was deeply involved in the company's various affairs, including product, procurement and talent management.

It is reported that Davis is also a "data freak" with an almost obsessive focus on cost data. In a 2023 lawsuit, emails revealed that Davis was involved in numerous discussions related to cost-cutting.

The lawsuit documents also show that Davis, in order to please Musk, was determined to significantly reduce spending. He even said that Twitter would stop negotiating property leases with brokers to reduce costs. When asked about the reason, Davis and other Musk allies said: "Elon wants it this way."

In addition, Davis also asked Twitter's then-real estate vice president, Tracy Hawkins, to save $500 million a year. When Hawkins and her team warned Davis of the financial risks of breaching contracts, Davis said, "Okay, then we just won't pay. We just won't pay the landlords."

When a Twitter employee told Davis that the company needed to install a private bathroom next to Musk's office and obtain a building permit, Davis dismissively said, "We don't do that; we don't have to follow those rules."

Another former Twitter employee, when interviewed, said that Davis would carefully examine the cost per square foot of lease agreements, or how teams determine service rates. He said, a common tactic was to stop paying suppliers, forcing them to renegotiate more favorable terms for Twitter.

The rise of the "frozen yogurt shop owner"

Interestingly, Davis, this "cost killer" who now wields power in Washington, was once a "frozen yogurt shop owner".

In 2008, while working in Washington, Davis noticed a lack of frozen yogurt shops in the area, so he decided to fill that gap. He opened a shop called "Mr. Yogato" and it quickly became a hit.

The special thing about this shop was that, customers could get discounts in various "quirky" ways. For example, singing along to the 1980s song "Mr. Roboto" would get a 10% discount; stumping Davis in a trivia quiz on "Seinfeld" or the Nicolas Cage movie "The Rock" would also get a 10% discount.

In a 2015 media interview, Davis said that he was originally a business student, but the 1998 Bruce Willis-directed film "Armageddon" sparked his interest in engineering, ultimately leading him to the aerospace engineering field.

Davis said at the time:

"Basically, my whole life path was changed by a Bruce Willis movie."