• Deloitte is planning layoffs in its government and public services practice.

• Deloitte has seen 127 federal contracts cut or modified since January as DOGE slashes government costs.

• Deloitte leaders said at a meeting Thursday that cuts may cause losses next year, an employee told BI.

Deloitte is preparing for layoffs.

Three current Deloitte employees told Business Insider they heard about the company’s plans on a call for the firm’s consulting and advisory practices on Thursday.

On the call, known internally as “A+C On Air,” the CEO of Deloitte Consulting, Jason Salzetti, said that its government and public services practice would separate a “small percentage” of its employees this month, one employee who was on the call told BI.

The employee added that Salzetti said cuts in the division would conclude by the end of April.

In a statement to Business Insider, Jonathan Gandal, a managing director in Deloitte’s reputation division, confirmed the layoffs, writing, “We are taking modest personnel actions based on moderating growth in certain areas, our government clients’ evolving needs, and low levels of voluntary attrition.”

It was not immediately clear how many people would be affected by the layoffs.

The government and public services practice has over 15,000 employees in the US and is worth $5.5 billion, according to Deloitte’s website.

The firm is bearing the brunt of DOGE’s scrutiny of the federal government’s contracts with the consulting industry.

The General Services Administration, which is leading the consulting cost-cutting push, asked 10 firms, including Deloitte, to submit a scorecard detailing their pricing and suggestions for where they could cut costs this past Monday. The results of those submissions have not been published yet, but the GSA is pushing for deeper cuts, The Wall Street Journal reported.

Since January, at least 127 of Deloitte’s government contracts have been cut or modified — more than double the number for Booz Allen Hamilton, the second firm most affected by federal cuts — according to data from the White House’s DOGE office analyzed by Business Insider earlier this week. That amounts to about $371.8 million in cuts, or over 11% of the $3.3 billion in contracts Deloitte strikes with US federal agencies a year.

At Thursday’s meeting, executives acknowledged the recent contract cuts.

Two employees who were on the call told BI that leadership said that Deloitte’s fiscal year, which typically runs June 1 through May 31, will end with higher revenue projections than planned.