Ever since Donald Trump’s billionaire aide Elon Musk took over the leading role at the Department of Government Efficiency (DOGE), thousands of federal workers have lost their jobs as part of the cost-cutting effort of the new administration.
According to some new reports, federal agencies have now been asked to justify their spending on private consultancy firms and review them as well. In March, Business Insider reported that federal agencies had to submit reviews of their existing contracts with 10 major firms in the US.
The General Services Administration had at the time asked federal agencies to submit the reviews.
“As part of the Trump-Vance Administration’s efforts to weed out fraud and waste, GSA initially asked agency partners to write a short explanation about why consulting contracts were essential for them to fulfill their statutory purposes,” a GSA spokesperson was quoted as saying by the media outlet at the time.
Private sector companies hit by DOGE
As federal agencies comply with the DOGE order, jobs of private sector employees are now at stake too.
The latest news comes from Deloitte, which is reportedly planning on laying off employees on its government consulting team, as per a Bloomberg report.
“We are taking modest personnel actions based on moderating growth in certain areas, our government clients’ evolving needs, and low levels of voluntary attrition,” a Deloitte spokesperson was quoted as saying by Bloomberg.
Deloitte loses most; Accenture, Booz Allen Hamilton among others
As per a report by Fortune, Deloitte has faced cuts or modifications of at least 124 government contracts due to DOGE orders, worth more than $1.16 billion.
The hardest hit company by the government’s ongoing cost-cutting drive, Deloitte has seen a $51 million contract for IT services for the Department of Health and Human Services go under the bus alone.
Not just Deloitte, at least nine other consulting firms are likely to face similar consequences. Inc.com reported that the contracts with these 10 consulting firms were worth $65 billion, and the government is on its way to cancel any ‘overpriced’ or ‘unworthy’ pact.
A Wall Street Journal report also said that fears about the issue could cost the companies billions in revenue. The affected companies may include Deloitte, Accenture Federal Services, Booz Allen Hamilton, General Dynamics, Leidos, Guidehouse, HII Mission Technologies Corp, Science Applications International Corporation, CGI Federal and International Business Machines Corporation.
As per the Fortune report, the US government cut 61 contracts with Booz Allen Hamilton worth an estimated valuation of $207.1 million, while Accenture saw a cut of 30 contracts worth $240.2 million. Meanwhile, IBM lost 10 contracts worth $34.3 million eliminated.
This makes Deloitte the hardest-hit company affected by Elon Musk’s DOGE savings drive, with scores of employees on track to lose their jobs.
