Accenture feels the pain as Trump administration cuts consulting spend
Accenture, a Dublin, Ireland-headquartered management and technology consulting firm, is facing a reduction in federal contracts as the Trump administration looks to slash consulting spend.
Shares of Accenture fell by more than 7% on Thursday as CEO Julie Sweet cautioned investors that the company faced “ongoing uncertainty” as the government shifted priorities.
The Trump administration and the Elon Musk-led Department of Government Efficiency (DOGE) have been aggressively slashing spending and cutting the federal workforce. The cuts include an executive order to eliminate the Department of Education, which was signed last week.
Meanwhile, the US General Services Administration has instructed federal agencies to review contracts with consulting firms and cancel those which are not essential.
The GSA also sent a letter to consulting executives requesting a detailed review of existing projects with agencies, according to the Wall Street Journal. The letter asks the consulting firms to explain their work in clear language, identify waste and spending reductions, and make pricing concessions.
“Many new procurement actions have slowed, which is negatively impacting our sales and revenue," Accenture said on a post-earnings call on Thursday.
Accenture, which had revenue of $64.9 billion in 2024, makes approximately 8% of its global fees from US federal contracts.
Other firms that perform a significant amount of federal consulting work also saw their stocks fall in recent days, including Booz Allen Hamilton and IBM.
