Overview

• Defense Secretary Pete Hegseth announced the termination of $5.1 billion in Department of Defense contracts on April 11, 2025.
• The cuts include major contracts with consulting firms Accenture, Deloitte, and Booz Allen Hamilton for services deemed nonessential.
• Hegseth emphasized a shift to in-house civilian workforce solutions to replace outsourced IT and consulting services.
• Eleven additional contracts related to Diversity, Equity, and Inclusion initiatives, climate programs, and COVID-19 response were also canceled.
• The terminations are expected to save nearly $4 billion, contributing to a broader $6 billion effort to eliminate wasteful spending and bolster warfighting capabilities.