Now, imagine the alternative universe where the government was actually interested in reducing administrative bloat in universities. It could have introduced for example a limit on grant overhead on all future grants, which would have likely forced universities find saving in admin/sports etc.
Obviously we don't live in that universe. We live in the world where capricious government with people like Musk who think they know everything better than everyone else just introduces arbitrary cuts. And then various commenters (including here) contort themselves trying to justify those cuts.