In a significant shake-up of federal consultancy operations,
London-based audit and consulting giant Deloitte has emerged as the hardest-hit
firm under the scrutiny of Elon Musk’s Department of Government Efficiency
(DOGE). Since January 2025, DOGE has terminated or modified 127 federal
contracts with Deloitte, leading to estimated taxpayer savings of $371.8
million.
According to data published on the official DOGE website and
analysed by Business Insider, Deloitte has faced more than double the
number of contract eliminations compared to any other consultancy firm.
Massive Contract Cuts
The largest of these terminated contracts was valued at $51
million and involved IT services provided to the U.S. Department of Health and
Human Services. Other impacted agencies include the Centers for Disease Control
and Prevention (CDC), National Institutes of Health (NIH), and the
Environmental Protection Agency (EPA).
As a result, Deloitte’s Government and Public Services
division — which employs over 15,000 professionals — has already begun pulling
staff off affected projects, with potential layoffs anticipated in the coming
months.
Other Major Firms Also Affected
Deloitte is not alone in facing DOGE’s sweeping reforms.
Other consulting firms affected include:
- Booz
Allen Hamilton: 61 contracts terminated, saving $207.1 million.
- Accenture:
30 contracts cancelled, resulting in $240.2 million in savings.
- IBM:
10 contracts removed, with savings estimated at $34.3 million.
Despite the broader impact on the consulting industry,
Deloitte’s losses are the most substantial, both in contract count and monetary
value.
A Cost-Cutting Mission with Controversy
The Department of Government Efficiency was formed earlier
this year as part of an aggressive initiative by the Trump administration to
curb excessive federal spending and root out inefficiencies in outsourced
services. Elon Musk was appointed as the head of DOGE, bringing his
cost-cutting philosophy to Washington.
While the move has been applauded by fiscal conservatives
for saving billions in taxpayer funds, critics warn of long-term consequences.
Analysts argue that continuous reductions in consultancy contracts could impact
government innovation, slow project execution, and deter private firms from
engaging in federal collaborations.
About Deloitte
Deloitte is one of the world’s “Big Four” professional
services firms, alongside EY, KPMG, and PwC. Its government-facing division has
long been a major player in providing technical, IT, and strategic services to
U.S. agencies.