People working in these companies are going to be lost!
With the change of power in America, the direction of government expenditure has also changed. After donald trump became the President, he handed over the command of 'Department of government Efficiency (DOGE)' to tech billionaire Elon Musk. As soon as Musk came into power, this department has started cutting government expenditure and making the system lean & efficient. Due to this campaign, thousands of government employees have lost their jobs so far and now its heat has reached the private sector as well.
Clouds of crisis loom over private consulting companies
According to reports that came out in March, all the government agencies of America were instructed to review the contracts made with their private consulting companies and prove whether they are necessary or not. The General services Administration (GSA) asked all the agencies to report on the contracts of the top 10 firms with which they have the biggest agreements. The purpose was to cut out what is useless.
Many companies like Deloitte, Accenture, ibm are on target
It is believed that this decision will have the biggest impact on Deloitte, which is a leading US consulting company. According to a Bloomberg report, Deloitte has started layoffs in its government consulting division. The company says that growth is slowing down in some areas, the needs of government clients are changing and the number of voluntary attrition i.e. those who leave the job on their own has also reduced. Due to these reasons, the staff has to be reduced. At the same time, according to a report by Fortune, after DOGE's orders, more than 124 government contracts of Deloitte have been cut or changed, whose total value is $ 1.16 billion i.e. more than Rs 9,700 crore. Just one contract, which was for the US Department of health & Human services and was worth $51 million, was outright cancelled.
Deloitte is not the only company that has fallen victim to this 'efficiency drive'. Dozens of contracts of big companies like Booz Allen Hamilton, Accenture Federal services, and ibm have also been cut or cancelled. Fortune's report says that 61 contracts of Booz Allen Hamilton worth $207.1 million and 30 contracts of Accenture worth $240.2 million have been cut. 10 contracts of ibm worth $34.3 million have also been cancelled.
According to Inc.com's report, the total value of the contracts of 10 big consulting firms that are under review is more than $65 billion and the government is now in the mood to directly cancel any "expensive or useless deal". Wall Street Journal has also warned that this policy could put billions of dollars of companies' revenue at risk.
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