According to information received by employees, Deloitte is making cuts within its government and public services sector due to a reduction in federal contracts, with 127 contracts being altered or reduced since January as a result of government cost-cutting initiatives. The company anticipates potential financial losses next year as a result of these cuts. Deloitte executives disclosed plans for layoffs during an all-hands call, referred to as "A+C On Air," announcing that a small percentage of employees will be separated from the government and public services division by the end of April. The firm's reputation division confirmed the layoffs, citing adjustments to personnel in response to changing client demands and declining voluntary attrition rates. The exact number of affected employees has not been disclosed, but the impacted sector employs more than 15,000 people in the US and generates $5.5 billion in revenue. Deloitte's contracts with the federal government have been particularly targeted for cuts, with 127 contracts being modified or reduced since the beginning of the year, amounting to over $371.8 million in cuts. Despite these challenges, Deloitte remains optimistic about exceeding revenue projections for the fiscal year ending in May.