Robert Besser
15 Apr 2025, 22:04 GMT+10
WASHINGTON, D.C: U.S. Defense Secretary Pete Hegseth has canceled several technology service contracts worth US$5.1 billion. These included deals with big companies like Accenture, Booz Allen Hamilton, and Deloitte, according to a memo from the Pentagon.
Hegseth said the contracts were for services that Pentagon employees could handle themselves. He called the spending "non-essential" and said ending the contracts could save about $4 billion.
After the announcement, Booz Allen's stock dropped 2.4 percent and Accenture's fell 2 percent in early trading. The companies have not yet responded to requests for comment.
The canceled contracts covered consulting work for the Navy, Air Force, DARPA, and Defense Health Agency. In a video on X (formerly Twitter), Hegseth said these were for extra services like consulting, which would now be handled internally.
He also directed the Pentagon's tech chief to work with Elon Musk's Department of Government Efficiency over the next 30 days to create a plan for cutting and bringing tech services in-house. The Pentagon also plans to negotiate better prices for cloud services.
Get a daily dose of Middle East Star news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Middle East Star.
More InformationDUBLIN, Ireland: With tariffs from the United States beginning to bite, Irish businesses are already feeling the pressure, prompting...
RIYADH/DUBAI: Tesla entered the Saudi Arabian market this week, taking on a country with ambitious electric vehicle goals but limited...
Islamabad [Pakistan], April 15 (ANI): The International Monetary Fund (IMF) has voiced concerns over obstacles deterring foreign investment...
New Delhi [India], April 15 (ANI): Retail inflation in the month of March fell to 3.34 per cent from 3.61 in February, according to...
People visit the 137th edition of the China Import and Export Fair in Guangzhou, south China's Guangdong Province, April 15, 2025....
Beijing [China], April 15 (ANI): China has ordered its airlines not to take any further deliveries of Boeing jets, Bloomberg reported...
WASHINGTON, D.C: U.S. Defense Secretary Pete Hegseth has canceled several technology service contracts worth US$5.1 billion. These...
WASHINGTON, D.C: U.S. President Donald Trump said this week that farmers might be allowed to ask the government to keep some farmworkers...
BEIJING, China: As tensions with Washington deepen, Chinese President Xi Jinping is turning his focus to Southeast Asia, with a diplomatic...
PASADENA, California: Because many people are worried about dangerous chemicals in smoke, ash, and debris from recent wildfires, Los...
WASHINGTON, D.C.: President Donald Trump, who had often complained about weak water pressure in showers, has signed an order to remove...
NEW DELHI, India: Apple has ramped up shipments of iPhones from India to the United States, chartering aircraft to move hundreds of...