Deloitte Faces Major Cuts Amid Trump Administration’s New Policies

WASHINGTON, D.C. — Deloitte has become the biggest early casualty of a Trump administration initiative aimed at cutting government spending on consultancy services, according to a recent analysis by the Financial Times. This scrutiny comes as consulting firms prepare for a Monday deadline to submit price reductions and other concessions.

The financial consulting giant has had approximately 129 contracts either terminated or reduced since the start of the administration’s cost-cutting efforts, more than any other firm in the sector. Experts suggest that Deloitte’s significant reliance on federal contracting exposes it to higher risks from policy shifts.

“Deloitte was particularly vulnerable because a large portion of its revenue comes from government contracts,” said a source familiar with the situation, who spoke on condition of anonymity. “The administration’s push to streamline spending has understandably put them in a difficult position.”

Adding to industry dynamics, the EY organization announced the expansion of its EY-Parthenon division, designed to centralize its Strategy and Transactions services into a distinct sub-brand. This strategic pivot aims to enhance value creation for clients in a challenging market environment.

Meanwhile, President Donald Trump recently signed an executive order mandating the federal government transition from paper checks to electronic payments by September 30, affecting services such as tax refunds and Social Security payments. This shift is part of a broader effort to modernize financial processes within the government.

“The administration seeks to create a faster, more secure payment system that eliminates outdated paper-based methods,” the White House stated in a release regarding the order.

In contrast, the National Taxpayer Advocate recommended that individuals whose tax refunds may be stolen must first contact the IRS to initiate claims for lost or stolen checks.

Across the Atlantic, concerns are also arising about the capabilities of new generations entering the workforce. Forvis Mazars, a leading accounting firm in the UK, is implementing training programs for Generation Z employees to improve their telecommunication skills, particularly for handling challenging conversations.

“We’ve identified a gap when it comes to relationship-building skills among younger employees,” said a spokesperson for the firm. “This initiative aims to equip them with essential soft skills that are critical in today’s workforce.”

In Australia, the former EY partner Peter White is facing legal action from the Australian Tax Office over allegations of undisclosed relationships and secret commissions related to tax schemes. The case could set a precedent for accountability in the consulting space.

In further developments, Grant Thornton Asia Pacific announced the appointment of a new chief executive, Said Jahani, who plans to take advantage of a slowdown within major consulting firms to recruit new partners. Jahani previously led Grant Thornton’s financial advisory division and is expected to take office in June.

“The recent struggles faced by the bigger firms offer an opportunity for us to attract top talent,” Jahani said. “There’s a collective pause among partners at the larger firms who are reconsidering their positions.”