Deloitte is preparing for layoffs in its government and public services practice, responding to budget reductions resulting from federal scrutiny. According to internal communication, CEO Jason Salzetti indicated that a small percentage of employees would be let go by the end of April. This decision follows significant contract modifications, with at least 127 affected since January. The company is facing pressure from the General Services Administration (GSA), which seeks deeper cuts from consulting firms. Currently, Deloitte's government practice employs over 15,000 staff and generates $5.5 billion in revenue.
Deloitte is taking modest personnel actions based on moderating growth in certain areas and evolving needs of our government clients.
A small percentage of employees in the government and public services practice will be separated this month, concluding by end of April.
The General Services Administration's consulting cost-cutting push has led to significant reductions in federal contracts for firms like Deloitte.
Since January, 127 federal contracts have been cut or modified as DOGE continues to scrutinize the consulting industry's government contracts.
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