WASHINGTON — Deloitte, one of the Big Four professional services firms, is facing its most significant government sector setback in recent history. Under the leadership of tech mogul Elon Musk, the Department of Government Efficiency (DOGE) has moved swiftly since January to eliminate what it has labeled “excessive and redundant” consulting contracts. Deloitte has borne the brunt of this purge, with 127 federal agreements terminated or restructured—costing the firm approximately $371.8 million in business.
According to an internal analysis shared by Business Insider, Deloitte’s total losses now double those of any competing consultancy. While DOGE has framed the move as a means of achieving taxpayer savings, the impact on Deloitte’s Government and Public Services division, which employs over 15,000 professionals, has been profound. Staff have already been pulled from ongoing projects, and layoffs are reportedly imminent, as noted by The Times of India.
Agencies and Contracts on the Chopping Block
The biggest casualty among Deloitte’s canceled agreements was a $51 million IT services deal with the Department of Health and Human Services. Other agencies impacted include the Centers for Disease Control and Prevention (CDC), National Institutes of Health (NIH), and Environmental Protection Agency (EPA). DOGE’s sweeping review appears to be targeting programs with high consulting overhead and multi-vendor complexity.
Sources within these agencies, who spoke on condition of anonymity, expressed concern over how these abrupt exits may disrupt key projects, especially in public health infrastructure, scientific research, and environmental monitoring.
Industry Braces for a New Normal Under DOGE’s Rule
Deloitte is not the only firm to feel the heat. Accenture, Booz Allen Hamilton, and IBM have also seen millions shaved from their federal portfolios. Still, Deloitte’s losses are the most severe, prompting industry insiders to reassess the stability of long-standing federal partnerships.
While DOGE’s actions may result in short-term taxpayer savings, experts warn the aggressive approach could undercut long-term innovation.
“You can’t optimize efficiency by gutting foundational support,” said a federal budget analyst familiar with ongoing changes. “There’s a risk of paralyzing strategic agencies that rely on external expertise.”
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Some firms may now take a cautious approach toward future bids, awaiting more clarity on DOGE’s evolving procurement policies. Deloitte’s staggering losses signal not just a contractual shift—but a deep rethinking of how the U.S. government views private consultancy in its digital and administrative backbone.