Deloitte is reducing its U.S. consulting workforce in response to federal pressure to cut costs on government projects.
While the firm did not disclose the exact number of affected employees, it described the move as “modest personnel actions” set to take place in the coming weeks, aligning with shifting government client demands.
A Deloitte spokesperson noted that a slowdown in voluntary employee departures has contributed to the need for reductions, as more consultants have remained in their roles than expected. Despite these adjustments, overall demand for Deloitte’s advisory services remains robust.
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Deloitte’s U.S. management consulting division saw minimal growth in 2024, expanding by less than 1%—a stark contrast to its 17.8% surge in the prior year and 25.5% increase the year before that.
By the close of 2024, Deloitte’s U.S. workforce numbered nearly 173,000 employees.
Deloitte, a leading consulting firm serving the federal government, recently joined other major firms in suggesting substantial reductions, amounting to billions, in their government agency contracts.
This move came in response to a General Services Administration (GSA) mandate requiring firms to justify their contract costs and suggest reductions.
However, sources familiar with the process indicate that the GSA is now pushing for even steeper cuts beyond those initially proposed.
Meanwhile, the accounting industry continues to experience lower-than-anticipated voluntary turnover following a hiring surge during the pandemic. Advisory-focused layoffs have become more common as corporate clients scale back spending on certain services. Deloitte itself reduced its U.S. workforce by 1.5% in 2023.