Elon Musk on Thursday said his work as chief cost-cutter for the Trump administration would yield $150 billion in savings, a significant reduction from earlier estimates that had reached as high as $2 trillion.

"I'm excited to announce that we anticipate savings in fiscal year 2026 from reduction of waste and fraud by $150 billion," Musk told US president Donald Trump at a White House cabinet meeting that was open to the media.

Musk, the world's richest person, said the cuts "will actually result in better services for the American people."

The Tesla tycoon, who is Trump's advisor on sharply reducing federal spending, had claimed recently that savings achieved by his Department of Government Efficiency would be a trillion dollars.

Musk's role at the White House, which is slated to end next month, faces criticism in part because his companies have had huge US government contracts.

The DOGE reform team has triggered alarm among critics as well by gaining access through the US Treasury to sensitive data.

At the cabinet meeting, Trump said Musk's DOGE teams were "fantastic" and urged them to stay in place for the "long haul" to carry out more cost-cutting.