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- Deloitte is planning layoffs after a federal crackdown on consulting contracts (businessinsider.com)
Deloitte Layoffs Loom as Federal Contracts Shrink
Deloitte is bracing for layoffs in its government and public services division, according to three employees who spoke with Business Insider. The announcement came during an internal call on Thursday. CEO of Deloitte Consulting, Jason Salzetti, informed employees that a “small percentage” of staff in the government and public services practice will be laid off this month, with cuts concluding by the end of April.
While the exact number of affected employees remains unclear, this division boasts over 15,000 employees in the US and generates $5.5 billion in revenue, according to Deloitte’s website. A company spokesperson confirmed the layoffs, citing “moderating growth in certain areas,” “evolving client needs,” and “low levels of voluntary attrition.”
These job cuts come as the firm grapples with the impact of the Office of Management and Budget’s (OMB) efforts to reduce federal spending on consulting contracts. Deloitte has been significantly impacted by these cuts, with at least 127 government contracts either reduced or modified since January. This represents over $371.8 million in cuts, a substantial portion of Deloitte’s $3.3 billion in annual federal contracts.
Despite the looming layoffs, Deloitte executives reportedly assured employees during the Thursday call that the current fiscal year will end with higher-than-projected revenues. Performance bonuses, typically distributed in June, are also expected to be paid as planned.
However, one employee expressed concern, anticipating a smaller bonus next year due to the ongoing situation. The OMB’s actions have reportedly created a sense of unease among Deloitte’s public sector employees, with some expressing concern about the potential ripple effects on the commercial sector.
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- Deloitte is planning layoffs after a federal crackdown on consulting contracts (businessinsider.com)