$65 Billion Consulting Shakeup: Deloitte, Accenture among biggest losers in Elon Musk’s DOGE overhaul

Elon Musk's aggressive cost-cutting campaign as the head of the Department of Government Efficiency (DOGE) is shaking up more than just federal offices—it’s now threatening billions in private sector revenue and thousands of jobs.

After taking the helm at DOGE under the Trump-Vance administration, Musk initiated a sweeping review of government spending. Federal agencies were ordered to justify every dollar spent on consulting services, triggering a reassessment of long-standing contracts with top firms.

Among the biggest casualties? Deloitte. The consulting giant has reportedly lost or seen changes in at least 124 federal contracts—worth a staggering $1.16 billion—according to Fortune. One of its major contracts—a $51 million IT services deal with the Department of Health and Human Services—has already been terminated.

Bloomberg reports that Deloitte is preparing to downsize its government consulting division as growth slows and agencies reevaluate their needs. “We are taking modest personnel actions based on moderating growth in certain areas, our government clients’ evolving needs, and low levels of voluntary attrition,” a Deloitte spokesperson stated.

Deloitte isn't alone in facing the DOGE fallout. Accenture, Booz Allen Hamilton, IBM, and others are also bracing for deep cuts. Fortune notes that Accenture has already lost 30 contracts worth $240.2 million, while Booz Allen Hamilton saw 61 contracts valued at $207.1 million canceled. IBM lost 10 contracts worth $34.3 million.

The General Services Administration (GSA) initially requested agencies to justify their contracts in an effort to curb waste and inefficiency. A GSA spokesperson confirmed that this move was part of the administration’s broader mission to eliminate fraud and overspending.

In total, the reviewed contracts across the 10 consulting firms were estimated to be worth $65 billion. Reports suggest the government intends to cancel any contracts deemed "overpriced" or "unnecessary."

Other consulting giants potentially impacted include General Dynamics, Leidos, Guidehouse, HII Mission Technologies Corp, SAIC, CGI Federal, and IBM. As agencies fall in line with DOGE directives, job cuts in both public and private sectors are expected to climb.

Deloitte remains the hardest hit so far, making it ground zero in Elon Musk’s government efficiency crusade.