Unlock the publisher’s digest free
Roula Khalaf, editor -in -chief of the FT, selects her favorite stories in this weekly newsletter.
Accenture has warned that Elon Musk’s efforts to reduce US government spending began to affect its income, the consulting group also highlighting the threats of global economic uncertainty.
On Thursday, the company indicated new works for the US government, which represented around 8% of its $ 16.7 billion in world revenue in the last quarter, slowly slowed down after the administration of President Donald Trump took office in January.
“The new administration has a clear objective to more effectively manage the federal government.
Accenture shares dropped 7% on Thursday to end at $ 300.91. They are now down 15% since the inauguration of Trump in January.
The company has not reduced its orientations on profits in previous year, as some analysts expected it, but admitted that new trends in the company were “very recent”.
Accenture is one of the 10 advisory companies targeted by the Trump administration in the repression of expenses orchestrated by the so-called Ministry of Government Effectiveness (DOGE) of Musk.
Last week, a federal file revealed that a value accentuation contract which can be worth up to 5 million dollars in additional activities by 2027 had been “terminated for more convenience”. The contract, under which $ 10 million has already been spent since 2021, was the 10th accentuation or subcontracting contract terminated under the Trump administration.
The General Services Administration, which contributes to coordinating public procurement, said that departments and agencies should prove the value of consulting contracts with the 10 companies – which also include Deloitte, Booz Allen Hamilton and IBM, among others – or cancel them.
“Although we continue to believe that our work for federal customers is critical, we are planning continuous uncertainty as the government’s priorities evolve and these evaluations are taking place,” said Sweet.
However, she said: “We see major opportunities over time to help us consolidate, modernize and reinvent the federal government to generate a whole new level of efficiency.”
Last month, Accenture abandoned its global objectives of diversity and inclusion after an “evaluation” of the American political landscape. The day after its inauguration, Trump ordered that federal entrepreneurs undertake not to have Dei programs that have violated anti-discrimination laws.
“In the past few weeks, we have seen a high level of what was already an important uncertainty in the global economic and geopolitical environment, marking a passage from our first quarter in December,” said Sweet.
Surinder Thind, analyst at Jefferies, said in a note to customers that “with continuous volatility, it is clear how confidence management should be consulted.”
Additional report by Chris Cook in London
