The $65 billion convention disappeared! Elon Musk’s Governor’s Road not only affects federal workers; Deloitte, Accenture, the hardest
Thousands of federal workers have lost their jobs since Donald Trump’s billionaire aide Elon Musk took over as the leadership role of the Department of Government Efficiency (DOGE), part of the new administration’s efforts to cut costs.
According to some new reports, federal agencies have now been asked to justify their spending on private consulting firms and also review them. In March, Business Insider reported that federal agencies must review existing contracts for 10 major U.S. companies.
The General Services Administration asked federal agencies to submit review at the time.
The GSA initially asked agent partners to write a brief explanation of why consulting contracts are crucial to them in achieving their statutory purposes. ”
Private sector companies suffer from Doge’s hit
The work of private sector employees is also under threat because federal agencies comply with Doge orders.
The latest news comes from Deloitte, which reportedly plans to lay off employees in its government consulting team, according to a Bloomberg report.
“We are taking moderate personnel actions to regulate growth in certain areas, the growing demand of our government clients and the low levels of voluntary churn,” Bloomberg said, citing a Deloitte spokesman.
Deloitte lost the most; Accenture, Booz Allen Hamilton, etc.
According to Fortune’s report, Deloitte faces cuts or modifications to at least 124 government contracts worth more than $1.16 billion due to door orders.
Deloitte is the toughest company for the government to continue to cut costs, seeing $51 million in IT services contracts on buses alone.
Not only Deloitte, but at least nine consulting firms may face similar consequences. Inc.com reports that the contract with the 10 consulting firms is worth $65 billion and the government is canceling any agreements that are “overpriced” or “unworthy”.
A Wall Street Journal report also said concerns about the issue could cost companies billions of dollars in revenue. Affected companies may include Deloitte, Accenture Federal Services, Booz Allen Hamilton, General Dynamics, Leidos, Guide House, HII Mission Technologies Corp, Science International Corporations, CGI Federal and International Commercial Machinery Co., Ltd.
According to the Fortune report, the U.S. government signed 61 contracts with Booz Allen Hamilton, worth an estimated $207.1 million, while Accenture cut 30 contracts worth $240.2 million. Meanwhile, IBM lost 10 contracts worth $34.3 million.
This makes Deloitte the hardest hit company affected by Elon Musk’s Governor’s savings drive, with many employees struggling to lose their jobs.
