Musk's DOGE Triggers Deloitte Consulting Job Cuts

Deloitte is responding to increased scrutiny of federal spending, led by Elon Musk’s Department of Government Efficiency (DOGE), with a new round of staff reductions in its U.S. consulting division. The firm confirmed “modest personnel actions” are planned in the coming weeks, citing shifting needs from government clients. While the exact number of jobs impacted remains undisclosed, a Deloitte spokesperson indicated a recent slowdown in voluntary departures has necessitated the cuts.

This move follows a period of significant growth for Deloitte’s U.S. management consulting arm, which saw gains of 17.8% in 2023 and 25.5% in 2022. However, growth slowed dramatically in 2024 to less than 1%, prompting the firm to adjust its workforce. Deloitte employed nearly 173,000 people in the U.S. at the end of last year.

DOGE, under Musk’s direction, has been aggressively reviewing federal consulting contracts, leading to the termination or revision of 127 Deloitte contracts since January. The White House estimates these changes will save taxpayers $371.8 million. Deloitte, along with other major consulting firms, recently submitted revised contract terms to the General Services Administration (GSA) in an effort to lower costs, though sources suggest the GSA is seeking even deeper reductions.

This latest round of cuts builds on a 1.5% staff reduction implemented in 2023. The situation reflects a broader recalibration within the consulting industry following the pandemic-era hiring boom. While firms aggressively expanded during the pandemic, tightening budgets among both corporate and federal clients have led to a plateau in demand for advisory services.

The news comes alongside an internal leadership change, with Suresh Kanwar appointed as the new managing partner for Deloitte’s UK financial services division, effective March 1, succeeding Richard Hammell, who now serves as client and market leader.

It’s a clear signal that the era of unchecked growth in government consulting is over. Musk’s DOGE is proving to be a disruptive force, forcing established firms like Deloitte to adapt to a new reality of fiscal responsibility. While some may view these cuts as a negative, a more efficient allocation of taxpayer dollars is ultimately a positive development. The pressure on consulting firms to demonstrate value for money will likely intensify, leading to a more competitive and accountable industry.