Deloitte is planning layoffs within its government and public services (GPS) practice following significant reductions to federal contracts in recent months. The move comes as the company responds to increased pressure from the federal government’s watchdog, the Department of Government Efficiency (DOGE) office, which is pushing consulting firms to reduce costs.
Since January, 127 of Deloitte’s federal contracts have either been cut or altered—more than any other consulting firm. The impact has been especially sharp compared to competitors, with Deloitte facing more than double the cuts.
Employees were informed about the impending layoffs during a recent internal call. Executives indicated that a small percentage of staff in the GPS division would be let go, with the process expected to be completed by the end of April. Deloitte’s GPS division employs more than 15,000 people across the US and generates approximately $5.5 billion in revenue.
The layoffs come at a time when the General Services Administration has asked Deloitte and other major firms to submit pricing scorecards and cost-cutting suggestions. While results from those assessments are awaited, pressure is increasing to reduce budgets further.
Despite the looming cuts, Deloitte executives remain cautiously optimistic. Leadership has indicated that the company’s fiscal year, ending 31 May, is still on track to exceed revenue projections. Performance bonuses are expected to be issued as per standard practice in June, although some employees expect a more restrained bonus outlook for the following year.
The mounting scrutiny and contract adjustments are causing uncertainty within Deloitte, particularly in public- sector units. While morale is low amongst staff members, there is also growing uncertainty.
