The Trump administration is making deep cuts to federal spending on consulting firms, and Deloitte is feeling the most heat. The administration’s push to cut unnecessary expenses and increase efficiency has led to at least 127 of Deloitte’s contracts being either canceled or modified. This is more than double the number of cuts faced by the second hardest-hit firm, Booz Allen Hamilton.
According to data from the White House’s DOGE office, these cuts will save taxpayers around $371.8 million. That is a massive amount, considering Deloitte’s contracts with federal agencies were worth $3.3 billion a year. This makes up nearly 10% of the firm’s most recent annual revenue.
The cuts have affected various projects, including IT services for the Centers for Disease Control and Prevention (CDC), which alone saved $51.4 million. Another contract for diversity, equity, inclusion, and accessibility training, running since 2020, was also reduced, saving $1.1 million.
Other Consulting Firms Also Affected
While Deloitte has been hit the hardest, it is not the only consultancy firm facing contract reductions. Booz Allen Hamilton, which relies on government contracts for nearly all of its $11 billion in annual revenue, has had 61 contracts cut. These cuts are expected to save $207.1 million.
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Accenture has also been significantly impacted, losing 30 contracts, leading to $240.2 million in taxpayer savings. The company’s CEO recently acknowledged that these cuts had already affected their revenue, and employees are now worried about potential job losses.
Several other firms, including Guidehouse, General Dynamics, IBM, and Leidos, have also seen contract reductions. Some, like CGI Federal, declined to comment, while others, such as Leidos, mentioned they are in ongoing discussions with the administration about these changes.
GSA Leads the Crackdown
The General Services Administration (GSA), which oversees federal procurement, is playing a key role in reviewing and reassessing government consulting expenses. The agency has been working separately from DOGE but has the same goal—cutting waste and improving efficiency in federal spending.
According to reports, consulting contracts with the top 10 firms were expected to bring in more than $65 billion in fees in 2025 and beyond. To tackle this, the GSA recently asked these firms to submit detailed scorecards breaking down their pricing and identifying which contracts were truly essential.
The agency set a simple requirement for these explanations: a 15-year-old should be able to understand the purpose and importance of each service. The firms had until Monday to submit their responses. Now, the GSA and other federal agencies are reviewing the scorecards to determine if further cuts will be necessary.
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Executives from the affected firms have shown alignment with the administration’s cost-cutting priorities, suggesting that more reductions could be on the way. However, as things stand, Deloitte remains the hardest-hit consulting firm in the government’s ongoing crackdown.
List of Contracts Cut and Savings Made (DOGE Data):
- Deloitte – 127 contracts, $371.8 million saved.
- Booz Allen Hamilton – 61 contracts, $207.1 million saved.
- Guidehouse – 49 contracts, $128.7 million saved.
- Accenture – 30 contracts, $240.2 million saved.
- General Dynamics – 16 contracts, $202.7 million saved.
- IBM – 10 contracts, $34.3 million saved.
- Leidos – 7 contracts, $78.5 million saved.
- CGI Federal – 7 contracts, $465,000 saved.
- Science Applications International Corp. – 5 contracts, $7.5 million saved.
The Trump administration’s push to cut consulting expenses is reshaping how the government works with private firms, and Deloitte has taken the biggest hit so far. As agencies continue to review contracts, more reductions may follow, but for now, the numbers speak for themselves—Deloitte is the biggest loser in DOGE’s consulting crackdown.
