Accenture Federal Services, a division of Accenture, has reported a decline in 2024 fiscal year sales due to budget cuts and procurement slowdowns under the Trump administration. CEO Julie Sweet stated that the division accounted for 8% of global sales and 16% of US sales, but recent federal cost-cutting measures have impacted revenues.
According to a transcript of Accenture’s earnings call, the General Services Administration (GSA) mandated a review of contracts with top consulting firms, leading to cuts in non-mission critical services, including those provided by Accenture Federal Services. Sweet noted that new procurement actions have slowed, negatively affecting revenue.
The cuts are part of President Donald Trump’s initiative to streamline government spending. Shortly after taking office, he established the Department of Government Efficiency (DOGE) to reduce federal expenses, particularly in areas deemed non-essential. Accenture Federal Services provides technology, security, and modernization support to national security, defense, and other government agencies.
Sweet acknowledged an elevated level of uncertainty, particularly around tariffs, which is impacting operations beyond the US. However, she remains optimistic, stating:
“Based on our experience with federal and commercial clients, we see major opportunities to consolidate, modernize, and reinvent government operations for greater efficiency.”