Deloitte is planning to implement layoffs within its Government and Public Services (GPS) practice due to significant reductions in federal contracts in recent months. This decision is in response to increasing pressure from the Department of Government Efficiency (DOGE), which is urging consulting firms to cut costs.
Since January, Deloitte has either lost or modified 127 federal contracts, more than any other consulting firm. The impact on Deloitte has been particularly severe, with the firm facing over twice the number of cuts compared to its competitors.
Employees were informed about the upcoming layoffs during a recent internal call. Executives indicated that a small percentage of staff within the GPS division would be affected, and the process is expected to be completed by the end of April. Deloitte’s GPS division employs more than 15,000 people across the United States and generates approximately $5.5 billion in revenue.
These layoffs come as the General Services Administration has requested Deloitte and other major firms to submit pricing scorecards and cost-cutting suggestions. As the results of these assessments are awaited, there is increasing pressure to further reduce budgets.
Despite the impending cuts, Deloitte executives remain cautiously optimistic. Leadership has stated that the company’s fiscal year, ending on May 31, is still on track to exceed revenue projections. Performance bonuses are expected to be issued as per standard practice in June, although some employees anticipate a more restrained bonus outlook for the following year.
The heightened scrutiny and contract adjustments are creating uncertainty within Deloitte, particularly in public-sector units. Morale among staff members is low, and there is growing apprehension regarding the future.
