We’ve been saying for weeks now that Deloitte is going to get especially screwed by President Trump’s hard-on for reducing government spending and some people have mistaken this for us having a hard-on for reducing the Green Dot’s revenue. We’re not bullying Deloitte. We’re focusing on them because this is a website that covers Big 4 more than any other topic and of the Big 4, Deloitte is by far the largest federal contractor. Thus, Deloitte will be damaged most by any effort to pull back on the use of outside contractors. And with layoffs inevitably on the way as a direct result of this, the last thing we want to do is bully.
You probably saw the Financial Times story from the other day but just in case, let’s pull a short excerpt from “Deloitte hit hardest by Trump’s clampdown on consultancy spending” for your reading pleasure:
Deloitte is emerging as the biggest early loser from a Trump administration push to axe spending on consultants, ahead of a Monday deadline for the companies to offer price cuts and other concessions.
The Big Four accounting and consulting firm has had at least 129 contracts terminated or slimmed down, according to a Financial Times analysis of data published by Elon Musk’s so-called Department of Government Efficiency (Doge). The figure is more than double that of any other consultancy.
According to FT — because we don’t do math here — the claimed savings of these 129 contracts is more than $371 million. The next contractor on their chart is Booz Allen Hamilton with 60 contracts canceled for a claimed savings of $207 million. Although Deloitte is “winning” in number of contracts, FT says its PwC’s spun off federal practice at Guidehouse that’s losing the most, monetarily speaking, despite it being just a few contracts–$376 million.
It must be really nice to have a data analytics team on staff to analyze that stuff. We have no such luxury so instead we’re doing this.
According to an early DOGE canceled contract dump thrown into a Google sheet (link to sheet here) by a Redditor in February, the total number of Deloitte’s canceled contracts in that batch of data is $572 million across 35 contracts. $572,422,822 to be exact. This requires further analysis, obviously.
So why Deloitte? This person on r/Deloitte has some out there guesses:
Mmm. Yeah, don’t think they care all that much about the overuse of offshoring at the moment. What seems mostly likely to us is that they’re having a harder time justifying each contract. But that’s just our out there guess.
