Deloitte Laying Off Hundreds of U.S. Consultants? Know Why

Deloitte, the global professional services firm, plans to cut dozens of consultants in the United States. The reason behind this step is rising government scrutiny and spending reductions by federal government agencies, a significant customer base for the company.

According to a report by The Wall Street Journal, Deloitte’s layoffs are largely affecting its U.S. consulting arm, particularly employees working on government contracts. This comes at a time when the government is focusing on reducing spending and reassessing how much is paid for external consulting services.

What Triggered the Layoffs

Deloitte's U.S. Government & Public Services segment has been hard hit. The unit has the U.S. government as a large client, and recent probes have questioned excessive billing and overreliance on outside consultants. In reaction, some federal agencies have made the decision to cut back on their use of consulting firms.

This move compelled Deloitte to rethink its staff and resource distribution, leading to job cuts.

Official Statement and Impact

Though Deloitte hasn't put a precise figure out, insiders anticipate hundreds of positions to be affected. The company has promised that impacted workers will be looked after with severance packages and job placement support.

"We are continually assessing our business needs and talent to position ourselves best to serve clients. These steps are required to position us for the current market demand." Deloitte spokesman said in a statement to The Wall Street Journal.