Deloitte plans US layoffs after Elon Musk’s DOGE cracks down on consulting contracts
April 4, 2025
It will impact consultants in Deloitte’s Government and Public Service division. Many employees in that unit have already been pulled off projects in recent weeks as the government cut funding --- including USAID.
Consulting firm Deloitte is planning layoffs from its government and public services practice following a US crackdown on some contracts. The company has seen 127 federal contracts cut or modified since January as the Elon Musk-led DOGE team worked to slash government costs. The affected practice has more than 15,000 employees but it was not immediately clear who how many would be impacted.
Multiple reports quoted employees who had attended a call between executives and workers on Thursday to indicate that layoffs would take place during the ongoing month of April. It will impact consultants in Deloitte’s Government and Public Service division. Many employees in that unit have already been pulled off projects in recent weeks as the government cut funding — including USAID.
Employees who spoke to Business Insider quoted Jason Salzetti — the CEO of Deloitte Consulting— said that the practice would separate a “small percentage” of its employees this month. The cuts in the government and public services division are slated to conclude by the end of April.
Deloitte has been hardest hit among the consulting giants as the US government reduces federal spending. According to an internal memo viewed by Bloomberg in mid-March, the General Services Administration has cancelled more than 1700 consulting contracts and saved around $4.5 billion. One of the largest consulting contracted it helped scrap was an $8.5 million Department of Health and Human Services pact with Deloitte.
“We are taking modest personnel actions based on moderating growth in certain areas, our government clients’ evolving needs, and low levels of voluntary attrition,” a company official told the publication via email.
[The Financial Express]
