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Unintended consequences
To:Brew Readers
HR Brew // Morning Brew // Update
How layoffs are harming consultants.

Hello, hello! Today is Tax Day. Despite the IRS’s plans to lay off half its staff (sending its audits and refunds processes into a tailspin), your return still needs to get done...and it's last call.

In today’s edition:

🪓 On the chopping block

Leadership burnout

CHRO priorities

—Courtney Vinopal, Mikaela Cohen, Kristen Parisi

RECRUITMENT & RETENTION

Delloite offices in San Jose

Sundry Photography/Getty Images

Thousands of former federal employees are now looking for work due to job cuts carried out by President Donald Trump’s administration during the first few months of this year. The layoffs were directed by the Department of Government Efficiency (DOGE), a cost-cutting initiative led by billionaire Elon Musk.

DOGE targeted consulting firms among its next spending cuts, and the moves seem likely to spur another outflow of employees with federal sector experience looking for new work.

How DOGE cuts could affect the consulting workforce. In February, the acting administrator of the General Services Administration called on federal agencies to cut “non-essential consulting contracts” with the top-10 highest-paid firms, including Deloitte, Accenture, IBM, and Booz Allen Hamilton. On Thursday, Defense Secretary Pete Hegseth announced that the Pentagon was cutting over $5 billion worth of contracts with multiple consulting companies, including “Accenture, Deloitte, Booz Allen, and other firms that can be performed by our civilian workforce.”

For more on the many implications of these federal-sector layoffs, keep reading here.CV

Presented By Marsh McLennan Agency

HR STRATEGY

Papers stacked around and on top of office chair.

Credit: Illustration: Anna Kim, Photos: Getty Images

Is your workforce burned out?

Some 36% of US workers are burned out, and 33% feel more burned out now than they did this time last year, according to a recent report from staffing firm Robert Half. And employee burnout can be pretty costly: Burned out individual contributors can cost US companies an average $3,999 per hourly worker and $4,257 per salaried worker, a recent American Journal of Preventive Medicine study found. These costs jump to $10,824 per manager and $20,683 per executive.

“What hurts companies more than anything, it’s managerial burnout,” said John R. Miles, CEO and founder of leadership firm Passion Struck. “When a manager doesn’t feel like they matter, the entire team feels it. If you have a disengaged manager, you’re likely going to have a disengaged team.”

For more on what’s causing leadership burnout and what HR can do about it, keep reading here.MC

DEI

Hands bursting a balloon that says DEI

Illustration: Francis Scialabba, Photo: Getty Images

CHROs in the US are trying to outline their priorities for the rest of the year, all while navigating a tumultuous workplace and uncertain economy. And when it comes to DEI, one leader recommends employers cast a wider net for who falls under the programming.

More than 200 CHROs outlined their 2025 priorities in a recent SHRM survey. The majority (51%) cited leadership and manager development as their top priority, followed by organization design and change management, and employee experience. Their priorities have shifted since 2024, when these leaders said they were more focused on engaging employees, retaining top talent, and recruiting workers with “necessary skills.”

Just 2% of CHROs cited inclusion and diversity among their top three priorities; 55% of CHROs think more companies will reduce or eliminate DEI initiatives in 2025.

For more on the recent SHRM survey and what it means for diversity and inclusion, keep reading here.—KP

Together With Achievers

WORK PERKS

A desktop computer plugged into a green couch.

FrancisFrancis

Today’s top HR reads.

Stat: US manufacturing jobs have fallen from 35% in the 1950s to 9.4% today, driven in part by Americans becoming more educated and affluent, and the country shifting more to service-related jobs. (the Wall Street Journal)

Quote: “The number one influencer of students thinking about grad school is either an economic downturn or economic uncertainty…Students think that will be a good relaunch when the job market picks up.”—Jayson Weingarten, senior admissions consultant at Ivy Coach, on younger people opting for grad school amid recession fears (Bloomberg)

Read: China’s intelligence services are targeting laid-off federal workers in recruitment efforts, aiming to extract sensitive information from them, counterintelligence experts warn. (the New York Times)

Well, well, well: Looks like your org could really benefit from integrating your employee well-being programs. Get Marsh McLennan Agency’s report to learn best practices for implementing your health + financial programs under one umbrella.*

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