The civil business is where Booz Allen will focus most of these layoffs as part of broader “resetting and restructuring” of that business, the company’s CEO and finance chief told investors. Booz Allen Hamilton plans to lay off roughly 7% of its workforce amid a government-wide push to reduce spending on contracts, primarily at civilian agencies.
About 2,500 positions will be eliminated during the first quarter of the company’s new fiscal year that started April 1. Booz Allen employed 35,800 people at the end of the prior fiscal year with 91% of them client-facing, according to its fourth quarter financial release posted Friday.
The civil business is where Booz Allen will undertake the majority of its job cuts as the firm expects revenue from those agencies to decline “in the low double digits” for its 2026 fiscal year, Chief Financial Officer Matt Calderone said Friday during the firm’s fourth quarter earnings call with investors.
Booz Allen is carrying out the layoffs amid a broader “resetting and restructuring” of the civil business, CEO Horacio Rozanski told analysts on the call.
Civil represented approximately 35% of Booz Allen’s overall $12 billion in revenue for fiscal year 2025 and did show a growth rate of 10% from FY 2024. But four months into the Trump administration, the Department of Government Efficiency has focused much of its push for spending cuts at those agencies.
Slowdowns in activity on five large technology contracts and the end of a large program at the Veterans Affairs Department coincided with one another during the fourth quarter and required a “significant number of employees needing to be redeployed simultaneously,” Rozanski said.
“Under normal circumstances and as our history shows, the dynamism of our business typically allows us to move our highly skilled-talent quickly to new opportunities. But at a time when procurements are moving much slower than normal, this has been challenging,” Rozanski added.
In February, leadership at the General Services Administration directed a review of contracts with 10 companies including Booz Allen that the agency deemed as the government’s largest providers of consulting services. DOGE is also a driving force behind GSA’s aggressive posture toward the group of contractors it calls consultants, which has since grown to 19.
This story will be updated.
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