Accenture loses revenue amid US federal cuts

Editorial

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

Accenture chair and CEO Julie Sweet stated that Accenture Federal Services accounted for 8% of the company’s global sales and 16% of sales in America.

Sweet, as revealed in a transcript of the company’s quarterly earnings call, noted that the General Services Administration (GSA) required federal agencies to review contracts with the highest-paid consulting firms with the US government to make cuts to non-mission critical services, which included Accenture Federal Services.

“As you know, the new administration has a clear goal to run the federal government more efficiently. During this process, many new procurement actions have slowed, which is negatively impacting our sales and revenue.”

US President Donald Trump instituted the Department of Government Efficiency (DOGE) to make cuts within the federal government shortly after his inauguration. Accenture Federal Services manages business related to national security, defense, and safety, supporting imperatives with research and development, technology, and design.

 

Sweet stated that there has been an “elevated level of uncertainty” around tariffs, however that is not exclusive to the Americas and there are global discussions looking to address the issue.

“Based on our significant experience across federal and commercial clients, we see major opportunities over time for us to help consolidate, modernise, and reinvent the federal government to drive a whole new level of efficiency,” said Sweet.