Two things can be true at once.
1) The jobs being cut are not needed.
2) The jobs being cut could have a negative impact to the economy, at least in the short-term
My biggest fear with DOGE is the job cuts (which would include private sector jobs that depended on now-cancelled government contracts), especially since the potential savings probably isn’t a big % of what can be cut.
Unemployment drives the economy IMO. Biden’s economy was not great, but it was not a disaster due to strong employment numbers. If unemployment increases due to all these government workers getting fired, house prices go down. If house prices go down (which I know many will claim is a good thing), that affects the many industries tied to housing and the cycle continues down the line.