Deloitte, one of the Big Four accounting giants, is trimming staff in its US consulting division after Elon Musk-controlled Department of Government Efficiency (DOGE)'s push for cutting federal spending.
The London-based firm confirmed that "modest personnel actions" will be taken in the coming weeks, citing evolving needs from government clients, The Wall Street Journal reported.
Deloitte hasn't said how many jobs will be cut, but a US spokesperson told Bloomberg that fewer employees have been leaving the company on their own lately. Since more consultants have stayed in their jobs, the company now needs to cut some positions, the spokesperson explained.
He added that demand for Deloitte's advisory services is still strong overall.
Deloitte's US management consulting arm saw growth of less than 1 per cent in 2024 - a heavy drop from 17.8 per cent in 2023 and 25.5 per cent in 2022. By the end of 2024, the firm had nearly 173,000 employees in the US.
The staff cuts come after DOGE, under Musk's leadership, intensified scrutiny over billions of dollars in federal consulting contracts. Since January, Deloitte has seen 127 of its government contracts either terminated or revised - resulting in taxpayer savings estimated at $371.8 million, according to the White House DOGE office's public data.
In response to a General Services Administration (GSA) deadline, Deloitte and other top consulting firms recently submitted revised contract terms to lower costs. Insiders say the GSA is pushing for even deeper cuts beyond the proposed reductions.
The company has already undergone a 1.5 per cent staff reduction in 2023 and is among several consulting firms now contending with a post-pandemic recalibration. During the pandemic, aggressive hiring sprees filled the ranks - but with corporate and federal clients tightening budgets, the demand for advisory services has plateaued.
In a leadership update, Deloitte also announced the appointment of Suresh Kanwar as the new managing partner for its UK financial services division, effective March 1. He succeeded Richard Hammell, who now serves as the client and market leader.
