UK-based multinational professional services network Deloitte is set to lay off employees in its US consulting division.
The move comes as the federal government has requested the company to lower the costs of its government projects. The exact number of affected employees has not been disclosed.
A spokesperson told Bloomberg that minor job cuts are expected in the coming weeks, aligning with changes in the needs of government clients.
Deloitte has also indicated that a recent decrease in employee departures has necessitated workforce reductions.
The company’s US management consulting business experienced an increase of less than 1% in 2024.
This represents a decline from the 17.8% growth seen in the previous year and 25.5% the year before.
By the end of 2024, Deloitte employed nearly 173,000 people in the US.
The firm has witnessed 127 federal contracts being cut or modified since January 2025 as the team led by Elon Musk worked to reduce government expenses.
In response to a General Services Administration (GSA) deadline, Deloitte, among other consulting firms, agreed to cut billions of dollars from their contracts.
The GSA, established in 1949, is an independent agency of the US government tasked with managing and supporting the operations of federal agencies.
It is currently reviewing the proposed cost reductions and is advocating for further cuts, as per sources familiar with the process.
Recently, Deloitte appointed Suresh Kanwar as the new managing partner for its UK financial services division, effective from 1 March 2025.
Kanwar took over from Richard Hammell, who will transition to the role of clients and markets leader after a five-year tenure as managing partner for financial services.
Currently, Deloitte offers a range of services including audit and assurance, consulting, and tax advisory.
