Deloitte is preparing for layoffs.

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

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 part ways with 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 BI, 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.

DOGE comes for consulting

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

On Monday, 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. 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 — about double the number for Booz Allen Hamilton, the firm second most affected by federal cuts — according to data from the White House's DOGE office analyzed by BI 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 each 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, would end with higher revenue projections than planned.

All three employees added that they heard on the call that performance bonuses, which are typically paid in June, would be paid as expected this fiscal year.

"I'm expecting a healthy but not jaw-dropping bonus in May, and then not really expecting much of any bonus next year," one of the employees said.

Employees told BI that DOGE's actions had shifted the climate at Deloitte, especially for those who work in its public sector practices.

Referring to the slew of tariffs President Donald Trump has proposed since taking office, one employee said: "The tariffs and chaos are beginning to cause alarm bells in commercial as well."

Deloitte did not respond to a request for comment for more details on bonuses and on DOGE's effect on company culture.

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