Deloitte is coming out as the biggest loser as the Trump Administration urges a reduction of spending on consultants. The Big Four accounting as well as consulting firm has had at least 127 contracts terminated or slimmed down. Deloitte is also among the 10 consulting firms that had to submit a detailed plan for saving government money. If you want to know more about Deloitte suffering the most because of Trump’s spending clampdown, this article is for you. It brings you everything you need to know about the spending cuts and their impact on various firms.
Deloitte Is Hit Hardest By Trump’s Spending Clampdown: The Impact
Deloitte has already had around 127 of its contracts terminated or slimmed down, which is double the total for any other firm on the list. DOGE has claimed the cuts to Deloitte’s contracts will save the taxpayers around $371.8 million. This also includes $51.4 million in savings from a contract that was providing IT services to the Centers for Disease Control and Prevention. It also includes $1.1 million in savings from a DEIA training contract that has been running since 2020. The company’s total contracts with the federal agencies were worth $3.3 billion a year. This is almost 10% of the company’s most recent annual revenues.
Deloitte Is Hit Hardest By Trump’s Spending Clampdown: GSA’s Demands
The General Services Administration, which operates separately from DOGE, helping in coordinating federal procurement, demanded that 10 consulting firms submit a report identifying 25% to 30% of savings. It also asked these 10 firms to be very sure about how the remaining spending on them is crucial for the agencies. The demand from GSA is made with an aim to reduce government spending by cutting contracts and grants it deems wasteful. These agencies were asked to submit their reports in layman’s language. They were also told to ensure 15-year-olds can understand what services they provide and why it is important.
Reactions From Firms
Some of the targeted firms have expressed their dismay regarding the exercise. Several experts also pointed out the irony of asking the suppliers what work to cut. One of the directors of a targeted firm mentioned how this exercise is the opposite of how this is actually supposed to be done. They also added that it seems like a high-schooler put this together. On the other hand, Julie Sweet, the chief executive of Accenture, mentioned earlier how they see major opportunities over time. These opportunities will help them consolidate, modernise, and reinvent the federal government.
Other Impacted Firms
After Deloitte, Booz Allen Hamilton is the second hardest-hit firm in the list, which used to generate almost all of its $11 billion in annual revenue from the public sector. Around 69 contracts of it have undergone cuts. Another major firm that suffered greatly is Accenture having at least 30 contract cuts. The following is a list of the top firms hit by Trump’s spending clampdown.
- Deloitte: 127 contracts; $372 million
- Booz Allen Hamilton: 61 contracts; $207.1 million
- Guidehouse: 49 contracts; $128.7 million
- Accenture: 30 contracts; $240.2 million
- General Dynamics: 16 contracts; $202.7 million
- IBM: 10 contracts; $34.3 million
- Leidos: 7 contracts; $78.5 million
- CGI Federal: 7 contracts; $465,000
- Science Applications International Corp: 5 contracts; $7.5 million
