Deloitte, one of the world’s largest professional services firms, is laying off consultants in its U.S. operations, primarily those serving government clients. The decision follows increased government scrutiny over billing practices and a broader move by federal agencies to rein in spending on consulting services.
Cuts Hit Government & Public Services Unit
The layoffs are concentrated in Deloitte’s Government & Public Services (GPS) segment, which counts the U.S. government among its biggest clients. Recent investigations have highlighted concerns over excessive billing and dependence on external consultants, prompting some agencies to reduce their engagement with firms like Deloitte.
Job Cuts Expected to Affect Hundreds
Although Deloitte has not disclosed exact numbers, insiders suggest hundreds of positions may be affected. The company emphasized that impacted employees will receive severance packages and job placement assistance.
“These steps are required to position us for the current market demand,” said a Deloitte spokesperson, adding that the company is constantly evaluating its business needs and workforce strategy.
Industry Trend or Isolated Move?
Deloitte’s decision reflects a larger trend of government clients cutting back on discretionary spending and reevaluating the value and cost of third-party consulting. The situation could spell more turbulence ahead for consulting giants heavily invested in public sector contracts.
