The industry hit hardest by DOGE cuts so far (hint: it's not the media)
Published On Feb 22, 2025, 11:10 AM
The recent cost-cutting initiatives by Elon Musk's Department of Government Efficiency (DOGE) are significantly impacting the consulting and development sector, particularly companies that rely on government contracts. Deloitte has seen over $219 million in contracts cut, although this is a small fraction of its total revenue. Smaller consulting firms may face more severe losses. This situation is compounded by legal actions from affected companies alleging unfair treatment regarding unpaid invoices. While consulting firms feel the brunt of these cuts, media organizations like Politico and Bloomberg are also experiencing reduced subscription revenues. Overall, DOGE claims to have achieved approximately $7.2 billion in savings so far, with future impacts expected as cuts widen to other sectors.
Stock Forecasts
DLO
Negative
The consulting and development firms that heavily rely on government contracts are likely to see reduced revenues and profitability due to these cuts. This could lead to a downturn in their stock prices in the near term as the market reacts to the loss of business.
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