Please adopt a Booze Allen consultant and invite them into your home.

snitzoid
2 hours ago
3 min read

Ripping these poor bastards from the government nipple. I can't watch. These are real live human beings. Folks with wives, children, expensive foreign cars in their circular driveways. Some have husbands!

What's next? McKinsey? A guy can dream! BTW...don't watch this. It's not funny.

Booz Allen Cuts 2,500 Consulting Jobs as Trump Cracks Down on Federal Spending

The company, which makes most of its money from government-related work, expects to trim 7% of its workforce; shares fall 16.5%

By Chip Cutter and Denny Jacob, WSJ

Updated May 23, 2025 4:13 pm ET

Booz Allen is to cut 2,500 jobs due to the Trump administration’s crackdown on federal contracting. Shares fell 16.5%.

The slowdown in government spending is pressuring Booz Allen, which makes 98% of revenue from government-related work.

The General Services Administration is pushing consulting firms to justify work and propose savings. IBM and Accenture are also seeing contract impacts.

Booz Allen BAH -16.53%decrease; red down pointing triangle plans to cut roughly 2,500 jobs after the company warned that it is feeling the effects of the Trump administration’s crackdown on federal contracting.

Shares fell 16.5% on Friday after Booz Allen executives told investors that the firm is seeing a slowdown in some government spending and that it expected its business to be under pressure in the first half of the fiscal year.

Booz, which makes 98% of its $12 billion in annual revenue from government-related work, is especially vulnerable to the Trump administration’s plans to cut spending on federal contracts.

The company had expected some disruption as the new administration came into power, but “we now see that these dynamics are indeed in play at a rate and speed that is beyond what we originally expected,” Chief Executive Horacio Rozanski said on a call with investors.

Booz expects to cut 7% of its workforce, largely in its division that deals with civilian government agencies. It will also reduce layers of management as it works to reposition the company.

Booz also posted revenue growth that came in below expectations in its latest quarter and issued guidance for the current fiscal year that underwhelmed.

For weeks, officials within the General Services Administration, which helps oversee procurement for the federal government, have pushed consulting companies including Booz Allen, Accenture, Deloitte and IBM to justify their work with the government and to propose substantial cost savings.

Rozanski previously told The Wall Street Journal that Booz had proposed more than $1 billion in savings on its government projects.

On Friday, Rozanski said that only about 1% of the McLean, Va., firm’s contracts had been canceled outright. But he said that the company is seeing a decrease in the pace of contracts awarded for nondefense work and that the firm expected business to decline in the coming year as the government reins in spending.

Booz Allen should benefit from efforts to modernize the government, embrace artificial intelligence and upgrade existing technologies, Rozanski said on the call with investors. It anticipates growth in its defense and intelligence operations.

Other firms have also seen the impact of the administration’s contract reviews. IBM told investors last month it had some government contracts canceled. Accenture CEO Julie Sweet in March said “many new procurement actions have slowed, which is negatively impacting our sales and revenue.”

Write to Chip Cutter at chip.cutter@wsj.com and Denny Jacob at denny.jacob@wsj.com