Booz Allen Hamilton announced plans to lay off approximately 2,500 employees, about 7% of its workforce, driven by a government-wide initiative to reduce spending on contracts. The layoffs primarily impact the civil sector of the company, which has experienced a significant slowdown in revenue growth expectations. CEO Horacio Rozanski indicated challenges in redeploying skilled talent due to slower procurement processes and a reduction in activities related to major technology contracts, particularly with the Veterans Affairs Department, which is Booz Allen's largest client.
"Under normal circumstances and as our history shows, the dynamism of our business typically allows us to move our highly skilled talent quickly to new opportunities. But at a time when procurements are moving much slower than normal, this has been challenging."
"The civil business is where Booz Allen will undertake the majority of its job cuts as the firm expects revenue from those agencies to decline 'in the low double digits' for its 2026 fiscal year."
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