How Deloitte is the 'biggest victim' of Elon Musk's DOGE cuts in the consultancy industry

Deloitte has emerged as the hardest-hit consultancy firm in the wake of Elon Musk 's Department of Government Efficiency ( DOGE ) crackdown on private contracts. Since January, DOGE has terminated or modified 124 federal contracts with Deloitte, resulting in an estimated $371.8 million in taxpayer savings. These cuts represent more than twice the number of contract eliminations faced by any other consultancy firm.

The largest terminated contract, valued at $51 million, was for IT services provided to the Department of Health and Human Services. Other affected agencies include the Centers for Disease Control and Prevention (CDC), National Institutes of Health (NIH), and the Environmental Protection Agency (EPA). Deloitte's Government and Public Services division, which employs over 15,000 people, has already seen employees pulled off projects, with layoffs expected to follow.

Deloitte is among at least 10 consulting firms affected by contract eliminations. In comparison, Booz Allen Hamilton saw 61 contracts canceled, amounting to an estimated $207.1 million in savings; Accenture had 30 contracts terminated, representing $240.2 million in claimed savings; and IBM faced the removal of 10 contracts, valued at $34.3 million in savings. According to Business Insider, Deloitte experienced more than double the number of contract cuts than any other consultancy.

DOGE's actions are part of a broader initiative by the Trump administration to reduce federal spending and eliminate inefficiencies. While the cuts have saved billions in taxpayer dollars, they have also raised concerns about their impact on innovation and economic growth. Analysts warn that prolonged reductions in government contracts could lead to a cautious "wait-and-see" approach among firms, potentially stalling progress in critical sectors.

Despite the challenges, Deloitte remains committed to adapting to the new landscape. The firm is exploring cost-cutting measures and strategies to optimise operations while maintaining its focus on delivering high-quality services.