Since January, the U.S. Department of Government Efficiency (DOGE), led by billionaire Elon Musk, has aggressively restructured or canceled federal contracts, with Deloitte emerging as the most impacted consultancy.
DOGE’s sweeping review of private contracts has resulted in the termination or modification of 127 federal agreements with Deloitte alone, amounting to an estimated $371.8 million in taxpayer savings.
According to data analyzed by Business Insider, Deloitte’s losses are more than double those of any other consulting firm.
Major Contract Cancellations Across Key Agencies
Among the terminated contracts, the largest was a $51 million IT services deal with the Department of Health and Human Services.
Other affected agencies include the Centers for Disease Control and Prevention (CDC), the National Institutes of Health (NIH), and the Environmental Protection Agency (EPA).
These cancellations have significantly impacted Deloitte’s Government and Public Services division, which employs over 15,000 professionals.
Reports indicate that staff have already been pulled from various projects, with layoffs expected soon, as highlighted by The Times of India.
Other Consulting Giants Also Affected
Deloitte is not alone in facing DOGE’s efficiency drive.
At least ten consulting firms have seen similar cuts. Booz Allen Hamilton experienced 61 contract eliminations worth $207.1 million, while Accenture lost 30 contracts valued at $240.2 million.
IBM, though less affected, had 10 contracts terminated, resulting in $34.3 million in savings. Despite these reductions, Deloitte remains the hardest hit, bearing the brunt of DOGE’s mission to streamline federal spending.
Balancing Savings with Innovation Risks
While the aggressive termination of contracts has led to substantial taxpayer savings, concerns are rising over the potential long-term implications.
Industry experts warn that continued cuts could slow innovation, particularly in sectors dependent on federal research and development.
Firms may begin to adopt a more conservative stance, waiting to assess future policy shifts before committing resources.
As one of the Big Four professional services firms—alongside EY, KPMG, and PwC—Deloitte’s significant losses underscore the shifting dynamics in federal consulting and the growing influence of DOGE under Musk’s leadership.
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